What is the difference between asset protection and asset management?

Asset protection and asset management are two separate but related concepts. Asset protection is the process of protecting a person’s assets from creditors and other potential risks. North Carolina’s asset protection law divides assets into two categories: exempt assets - assets which are protected from creditors by state law - and non-exempt assets - assets which are not protected from creditors. Exempt assets in North Carolina include things like a person’s homestead, motor vehicles, clothing, and health and life insurance policies. Non-exempt assets include investments, real estate, and business assets, among other things. Asset management is the process of managing a person’s assets in order to maximize their return. In North Carolina, a person may create a trust to manage their assets. Trusts provide a level of asset protection because the assets within the trust are typically exempt from potential creditors. Trusts also allow the assets to be managed and invested in a way that allows the trustor to benefit from the return on their investments. Asset management can also involve creating an estate plan and writing wills. Estate plans and wills ensure that a person’s assets are distributed according to their wishes, and provide protection to their assets in the event of their death.

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What is the difference between asset protection and asset management?

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