Asset Protection Information

Jacob Stein specializes in structuring the ownership of your assets to make it difficult, or even impossible, for others to take them away. Creditors, plaintiffs, unhappy business partners, state and federal agencies - all can threaten those assets. Our asset protection planning can reduce, or even eliminate, those threats long before they appear. Our clients tell us that the peace of mind that asset protection brings is priceless.

Protecting Your Business

An interest in a business is personal property, and similar strategies are utilized to protect business interests as other personal assets like cash and investments. Klueger & Stein's inventory of strategies to protect your business include incorporation, limited liability companies, estate planning, and various types of trusts (including domestic self-settled trusts, foreign trusts and private retirement trusts). With our broad experience, we custom-design the strategy that fits your business and circumstance best.

We also often help clients restructure their existing business operations to separate the valuable assets of the business, like intellectual property or equipment, from the liabilities of the business.

For clients who desire privacy and want to separate themselves from their business, we are adept at setting up privacy shields and information disclosure obstacles.

A Case History: Building Protection

The company is a successful California-based homebuilder. Over the past few years, following many construction defect lawsuits, the firm found it more and more difficult to carry liability insurance. Coverage was just too expensive. Eventually, the decision was made to stop carrying insurance coverage altogether.

Without insurance coverage, the company-and possibly its owners-was exposed to future lawsuits. Asset protection for the company and its owners was the best alternative to insurance coverage.

The company's operations had to be restructured so that the liability arising out of any one building project would reach only a limited amount of the company's assets, if any. A separate legal entity was established for each construction project. Their protection was enhanced further by having different entities own the real estate and do the development work.

An additional layer of entities further insulated the individual owners from the liabilities of the business. The ownership of the personal assets of the owners was further restructured.

In its first test, this protective structuring worked as planned-seeing the level of protection it faced, the plaintiff dropped a potential class action lawsuit and accepted a surprisingly low settlement offer.