An axiom of good Asset Protection planning is to title your investments and other ‘safe assets’ to one entity, such as a limited partnership, and title such dangerous or liability-producing assets as vehicles, equipment, real estate or businesses to other separate entities – usually one, or multiple LLCs. Why jeopardize your valuable or ‘safe’ assets to the creditors and lawsuits that arise from your dangerous or liability-producing assets? That’s your gamble when you title all your assets to one entity. You always want to limit your exposure. That’s why you should isolate your liability-prone assets to separate entities and title your safe assets to another.
