The drumbeat of litigation against doctors, accountants, business executive and other professionals is prompting a growing number of people to play defense: They're putting their money where creditors can't get to it.
A key technique is the so-called asset-protection trust. The idea is to put a big chunk of your money in an irrevocable trust. The trust is run by an independent trustee, who may opt to give you payments from time to time. If done correctly, the trust -- which has to be located in a jurisdiction that has passed special laws -- generally can't be touched by creditors if you're sued or file for bankruptcy protection. [
wsj]
