What is the difference between asset protection and asset preservation?

Asset protection and asset preservation are two distinct yet related legal concepts that can be used to protect an individual’s assets from potential creditors. Asset protection refers to the legal strategies an individual in Massachusetts may use to shield their assets from future potential creditors who may seek payment from them. These strategies can include transferring ownership of assets to another individual, forming a trust or LLC, or dividing assets up into different categories and placing them in different accounts. Asset protection law specifically allows an individual to determine which assets are immune from creditors. Asset preservation, on the other hand, is a term used to refer to a type of legal structure that an individual may use to protect their assets from current creditors, such as those from a lawsuit. This type of legal protection can be used to protect an individual’s home, investments, or business assets from their potential creditors. Asset preservation typically uses a combination of trusts, LLCs, and other asset protection strategies to make it harder for creditors to recover any assets from the individual in case of a financial default. To summarize, asset protection refers to the strategies an individual may use to protect their assets from future creditors, while asset preservation is designed to protect them from current creditors. Both are legal strategies that can be used to protect an individual’s assets in Massachusetts.

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What is the difference between asset protection and asset preservation?

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