What is the difference between asset protection and asset preservation?

Asset protection and asset preservation are two different strategies used to protect a person’s assets from potential creditors. Asset protection is the process of using legal methods to protect a person’s assets from creditors. This can involve asset transfers, trusts, and other estate planning techniques that reduce debts and shield assets from creditors. Asset preservation, on the other hand, is the process of using legal methods to protect a person’s assets from being taken away in a claim by a creditor. This typically involves the use of exemptions, which allow people in Missouri to protect their assets from creditors. For example, Missouri residents have an exemption of $15,000 in equity value for a home. This means that if a creditor attempts to take a person’s home, the equity in the home up to $15,000 is protected from the creditor claims. Asset protection and asset preservation are related strategies used to protect a person’s assets, but the two are distinct from one another. Asset protection is the process of using legal methods to avoid potential creditors, while asset preservation is the process of using legal methods to protect assets from creditors’ claims. Understanding the differences between the two is critical to protecting one’s assets from creditors in Missouri and other states.

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What is the difference between asset protection and asset preservation?

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