What is the difference between asset protection and asset preservation?

Asset protection and asset preservation are two terms used when discussing giving legal protection to a person’s various assets. While these two goals are related, there is a difference in how the two terms are used. Asset protection is the process of legally protecting assets from creditors and lawsuits. The goal of asset protection is usually to prevent creditors from taking or seizing the assets of the individual. This can be done by establishing business entities such as corporations or limited liability companies that can provide liability protection to the assets of the individual. In Oregon, various asset protection laws provide additional protection to assets located within the state. Asset preservation is the process of protecting assets from potential risks that can impact their value. This includes things such as taxation, inflation, market changes, or the death of the owner. Asset preservation focuses on the long-term preservation of assets by putting certain strategies in place to protect them from risks. This includes things such as creating trusts, taking out insurance, and diversifying investments. Ultimately, asset protection and asset preservation are related but serve different purposes. Asset protection focuses on preventing creditors from seizing assets and asset preservation focuses on protecting assets from risks that can impact their value. Both are important goals and individuals should be sure to understand the differences between the two when planning for asset protection and preservation in Oregon.

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What is the difference between asset protection and asset preservation?

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