Protect Wealth With Smart Planning!

September 03, 2025•3 min read

R. Kenner French introduces the importance of asset protection by framing it as a form of risk mitigation. He explains that many people are familiar with the term but often don’t fully understand its value until it’s too late. Without proper planning, decades of accumulated wealth can be wiped out by a single lawsuit. Asset protection strategies, such as the use of LLCs (Limited Liability Companies), serve as a safeguard to keep assets secure and prevent them from being exposed to unnecessary risk.

Kenner emphasizes that LLCs are one of the most practical tools for asset protection. He highlights the concept of “piercing the veil,” noting that a properly structured LLC protects assets within that entity while insulating other holdings. For example, if an individual owns 10 properties, each placed in a separate LLC, a lawsuit against one LLC will not threaten the properties in the others. This creates asset diversification, reducing overall exposure to legal claims. He also distinguishes LLCs from S-corporations and C-corporations, pointing out that while each structure has its use cases, LLCs are often the most flexible and effective for real estate investors and entrepreneurs.

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He stresses the importance of comprehensive planning and working with a knowledgeable asset protection attorney. Drawing from the expertise of Bob Bloom and the legacy of Jay Mitten—the “father of asset protection”—Kenner compares effective planning to building a moat around a castle. Just as a moat discourages attackers, a strong legal structure discourages frivolous lawsuits by making it clear that pursuing litigation will be costly and unproductive. Conversely, a poorly designed plan is like a castle with an exposed bridge, inviting legal challenges.

Beyond LLCs, He outlines additional elements of asset protection, including umbrella liability insurance, the use of domestic or foreign trusts, and retirement accounts that may be shielded from lawsuits. He underscores the value of regularly reviewing and updating one’s asset protection plan, recommending annual assessments to ensure structures align with changing asset values and circumstances. A case study he cites demonstrates how proper planning led an attorney to abandon a lawsuit because the defendants’ holdings were well protected.

In conclusion, Kenner urges business owners and real estate investors to take action before problems arise, quoting President Kennedy’s adage: “The time to repair the roof is when the sun is shining.” He invites listeners to access resources, including free educational content and the Vast Vault community, and offers a free copy of his book. Asset protection, he stresses, is not just about legal compliance but about securing one’s hard-earned wealth for the future.

Takeaways

• Asset protection is crucial for safeguarding wealth.

• LLCs provide a legal structure for asset protection.

• Proper planning is essential for effective asset protection.

• Liability insurance is a key component of asset protection.

• Regularly review and adjust your asset protection strategies.

• Not all attorneys specialize in asset protection; choose wisely.

• Asset protection plans are becoming more affordable.

• Understanding your risks is vital in asset protection planning.

• A well-structured LLC can limit exposure to lawsuits.

• Consulting with an asset protection specialist is recommended.

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