Stop Lawsuits Before They Start: How an APT Shields Your Assets

You don’t plan to be sued. But you also don’t wait for a house fire before getting insurance. So why would you wait for a lawsuit before protecting your assets?

An Asset Protection Trust (APT) is your financial fireproofing. It’s a forward-thinking legal strategy designed to keep what you’ve built safe from lawsuits, creditors, and other unexpected threats.

But here’s the key: APT protection only works if it’s in place before trouble hits. Once you’re sued, moving assets into a trust could be seen as fraudulent. Timing is everything.

Why This Matters

Let’s say someone slips and falls on your rental property. Or your business faces a breach-of-contract claim. Maybe you’re a medical or legal professional with high liability exposure.

Without an APT:

• Your personal assets (like your home, bank accounts, or investments) could be at risk.
• Insurance may not cover the full cost—or may deny your claim altogether.
• Attorneys can go after you personally to satisfy a judgment.

With an APT in place:

• Your assets are held by the trust, not by you—making them harder to access by creditors.
• Attorneys may settle for your insurance limit rather than pursue a complex, time-consuming legal fight.
• You can sleep better knowing your legacy isn’t one lawsuit away from disappearing.

How Does an Asset Protection Trust Work?

An APT separates legal ownership of your assets from your name while still allowing you to benefit from them in carefully defined ways.

Here’s how:

• You (the grantor) create the trust and transfer selected assets into it.
• A trustee (which may be you or an independent third party) manages the trust according to strict terms.
• The assets are no longer yours—on paper—but are still used to benefit your family or your estate plan.

The structure makes it far more difficult (and less appealing) for a plaintiff’s attorney to pursue legal action against those assets.

Common APT Use Cases

APT protection makes sense if you:

• Own real estate or investment property
• Run a business with customer or vendor contracts
• Work in a profession with malpractice exposure (doctors, lawyers, CPAs, etc.)
• Have significant savings, investments, or inheritance you'd like to protect

Even families with modest assets use APTs to guard against the unexpected—and to preserve peace of mind.

The Process: Getting an APT in Place

Here’s what the setup typically involves:

1. Strategy Meeting
Sit down with our team to review your assets, risks, and goals. This is where we figure out if an APT is right for you.

2. Choose the Type of APT
Domestic vs. Off-shore, revocable vs. irrevocable—each has pros and cons. We’ll guide you to the right option.

3. Select a Trustee and Jurisdiction
Certain states (like Nevada, South Dakota and Michigan) have stronger asset protection laws. We’ll help you decide the best location and trustee.

4. Transfer Assets to the Trust
You’ll move ownership of certain assets into the trust—real estate, investments, business shares, etc.

5. Maintain Compliance
We’ll walk with you to ensure your trust stays up to date and legally compliant as life evolves.

How Rutkowski Law Firm Can Help

Setting up an Asset Protection Trust is one of the smartest, most proactive steps you can take to safeguard your legacy. At Rutkowski Law Firm, we walk you through every step—from evaluating your risks to structuring your trust with clarity—so your assets are protected before trouble arises.

Need help setting up an APT or updating your estate plan?
Schedule a consultation today.