At ERX Wealth Partners, we believe that effective wealth management transcends mere asset growth, focusing profoundly on their long-term preservation. For over a quarter of a century, we have been at the forefront of offering comprehensive wealth management coupled with robust asset protection planning. While we strive to offer the best strategies, we emphasize that no asset protection plan can offer absolute guarantees.

Our methodology is firmly anchored in the concept of asset preservation and protection, ensuring each planning phase is initiated and concluded with this core principle. We understand that the essence of asset protection lies in both its principle and practice: to eliminate any financial incentive for others to litigate against you. Through strategic planning and outside professionals, we seek to provide optimal protection, meticulously shielding your assets. This approach is designed to deter potential claimants and creditors, safeguarding your wealth from external threats and ensuring its enduring security. 

Rainbow Bridge National Monument

The aforementioned quote from John D. Rockefeller succinctly encapsulates Key Concept # 1 - Separate Ownership from Beneficial Use and Control.

It is obvious that suing someone with little or no assets will get you nothing. If there is no money to be made, who is going to invest their time and/or capital into such a futile endeavor? Certainly not lawyers.

That’s the power of key concept #1: to remove you from the direct ownership of your assets, but leave you with beneficial use of those assets, as well as control. 

How might you go about this? Find out in Key Concept #2 - USE A TRUST.

Vermilion Cliffs

A TRUST is a very special form of ownership which has been used as far back as our English common law roots.

A Trust is formed when one person – called a SETTLOR - places an asset with another person called a TRUSTEE. The TRUSTEE agrees to take care of that asset for a third-party called a BENEFICIARY.

The TRUSTEE is required to follow the directions inside the TRUST about how and when the BENEFICIARY has use, control, or even direct ownership of the TRUST assets.

For generations, wealthy families have utilized Trusts to protect BENEFICIARIES from squandering of assets, divorce, poor investing, bad decision making, and yes, even lawsuits.

How can a TRUST do all of this? Find out in Key Concept #3 - IRREVOCABILITY.

El Capitan

IRREVOCABILITY is a powerful concept. Basically, it means once you have set the path in motion, you cannot change your mind. Indeed, IRREVOCABILITY may allow a TRUST to withstand the attack of an aggressive creditor.  

When the SETTLOR makes the Trust IRREVOCABLE, he or she fixes the terms and removes the power - from even themselves -  to revoke or undo the TRUST. This means once the assets are in the TRUST, they can only come out as determined by the terms of the TRUST itself. And it is here where we can add a very special kind of term which may also protect trust assets from CREDITORS. 

What is that term? Find out in Key Concept #4 - Spendthrift Provisions.

Glacier National Park

SPENDTHRIFTS go through money like water.

When Daddy Warbucks was considering how to bequeath his estate to Little Orphan Annie, you can be sure he added some provisions in there to protect her from herself.  These are called SPENDTHRIFT PROVISIONS. They place limits on how BENEFICIARIES can access TRUST assets.  They can be hard and fast rules like "my son shall have no distributions until he finishes Graduate School", or they can be flexible and discretionary like "the Trustee may make distributions if the Beneficiary proposes a solid investment".

But one of the most powerful of all SPENDTHRIFT PROVISIONS relates to the protection from creditors. Creditors may be excluded from ever reaching trust assets under any circumstances. When these provisions are utilized, creditors may not be able to reach Trust assets, even when a beneficiary enjoys their use.  And this is where it gets interesting for Asset Protection Planning.

So how can you set up a SPENDTHRIFT TRUST for yourself, like Daddy Warbucks did for little Annie?  Find out in Key Concept # 5 - Self-Settled Trust.

Blacktail Ponds Overlook

If you are not lucky enough to be inheriting your assets in a protected SPENDTHRIFT TRUST already, then you may consider coming up with a way to do it.   One way may be to create a SELF-SETTLED TRUST.

A SELF-SETTLED TRUST is a Trust you create for yourself, with yourself, as your own beneficiary. 

Self-Settled Trusts have been employed for generations. In fact, every revocable living trust, a type of trust commonly used for estate planning, is a Self-Settled Trust. 

However, there’s a catch - to get the full benefits of Asset Protection Planning, you need to combine all these first 5 Key Concepts. But in many places, it is not possible to self-settle a trust, make it irrevocable, and include those all-powerful Spendthrift provisions.

We Protect The Extraordinary.

Your extraordinary life demands extraordinary protection. Beyond just any advisor, you need a personal risk advisor who truly understands the scope of your needs. Our partnership with Marsh McLennan Agency Private Client Services ensures you receive exceptional personal service, global reach, extensive resources, and deep industry expertise. We're here to ensure you're protected in every critical moment.

Our Comprehensive 4-Step Insurance Portfolio Management Process:

1. Discover - In our comprehensive risk management interview, we attentively listen to understand your goals.
2. Design - Receive bespoke solutions tailored for high-value assets from specialized insurers, ensuring your unique needs are met.
3. Advise - Benefit from continuous, tailored advice, consultation, and service, keeping your insurance in sync with your evolving lifestyle.
4. Advocate - Should a loss occur, our dedicated team represents your interests, managing the claims process to secure the best outcome for you.

We don't just design personal insurance solutions; we create a safety net for your estate, wealth, and the people and things you cherish most. Our established relationships with leading carriers in the industry empower us to negotiate effectively on your behalf, securing coverage even in the most challenging scenarios. Are you ready to partner with someone who not only understands the uniqueness of your life but also possesses the expertise to comprehensively protect it?"