Asset Protection Strategies in Connecticut: How to Safeguard Your Wealth with Trusts, LLCs, and Smart Titling
You work your whole life to build your wealth — your home, your business, your investments. But one lawsuit, accident, or medical event can threaten everything you’ve earned if the right protections aren’t in place.
Asset protection is about being proactive. It’s not about hiding money — it’s about legally structuring your assets so they’re shielded from unnecessary risk while staying fully compliant.
Here are some of the most effective strategies:
1. LLCs (Limited Liability Companies):
If you own rental properties, a small business, or side ventures, consider placing them in an LLC.
It separates personal assets (your home, savings) from business liabilities.
If the business is sued, your personal wealth stays protected.
In Connecticut, even a single-member LLC offers meaningful protection when properly maintained.
2. Trusts:
Trusts aren’t just for estate planning — they can also be powerful asset protection tools.
Revocable trusts help with probate avoidance and privacy, but do not protect from creditors.
Irrevocable trusts, on the other hand, can protect assets from creditors, lawsuits, and long-term care spend-downs (Medicaid planning) when structured correctly.
3. Proper Titling:
The way you title your assets matters more than most people realize.
Joint Tenants with Rights of Survivorship (JTWROS) means the surviving owner automatically inherits — but either party’s creditors can still make claims.
Tenancy by the Entirety (TBE), available only to married couples, offers stronger protection — one spouse’s creditors can’t seize jointly held property if the other spouse isn’t liable.
Always confirm your titling matches your goals — for both estate and asset protection purposes.
4. Insurance:
Sometimes the simplest protection is overlooked:
Umbrella liability insurance adds a layer of protection beyond your homeowners and auto policies — often millions in coverage for a few hundred dollars a year.
Key person and business liability insurance protect income streams and partners if something happens to you or a co-owner.
5. Keep It Clean:
No strategy works if your paperwork isn’t right. Keep LLC records, trust documents, and insurance policies up to date. Courts look for “piercing the veil” — if your personal and business finances are mixed, that protection can disappear.
The Bottom Line
Asset protection isn’t about paranoia — it’s about preparedness.
When done right, it ensures that a single lawsuit, accident, or life event doesn’t unravel decades of hard work.
A thoughtful combination of trusts, LLCs, titling, and insurance can keep your wealth — and your peace of mind — intact.