What is the difference between asset protection and asset preservation?

Asset protection and asset preservation are similar yet distinct legal concepts in Washington. Asset protection refers to the act of safeguarding assets from being taken away or liquidated to satisfy a debt obligation or legal judgment. On the other hand, asset preservation is the process of protecting assets in anticipation of future debts, liability, or lawsuits. Asset protection normally involves the use of different legal strategies, such as transferring assets to a trust or setting up a limited liability company, in order to make them inaccessible to creditors. On the other hand, asset preservation focuses on keeping assets safe from potential creditors, often by setting up a “spendthrift trust”, which is designed to protect assets and ensure that they are not liquidated to satisfy debt obligations. In Washington, asset protection can be a complicated affair that involves a wide range of legal considerations, such as state law, federal tax law, and the specific assets in question. As such, the advice of a qualified attorney is recommended in order to ensure that the desired outcome is achieved. Asset preservation, on the other hand, is more straightforward, and is typically handled by an individual or family without legal assistance. In summary, asset protection is the legal strategy of safeguarding assets from potential creditors, while asset preservation is the process of protecting assets in anticipation of future debts or liabilities. Both parties require the consultation of a qualified attorney in order to ensure the desired outcome.

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What is the difference between asset protection and asset preservation?

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