Asset Protection can be defined as the process of taking steps to minimize the risk of creditors or other claimants from being able to reach your assets. This can include setting up a different entity, such as an LLC, for each property, business, etc. Thus, if one particular property is subject to a suit (e.g., a tenant is hurt on one rental property) the claimant will be limited to the assets from that particular property or entity. This can prevent a domino effect against your other assets. An LLC, just like a limited partnership, offers important benefits where asset protection is important. Hence it can be said that Asset protection is the long-established process of so arranging one's affairs as to minimize the risk that one's wealth will be seized, either by prospective litigants, future creditors, or a taxing authority. When asset protection is undertaken with due regard for all relevant laws and regulations and for lawful purposes, it may also be referred to as wealth retention. All of Sovereign's services address wealth retention goals.

In general Asset Protection is the placement of tangible assets in a secure holding structure to protect against future claims such as bankruptcy, judgment, creditors, and other litigants.

Conventional asset protection is not hiding assets, defrauding creditors or evading income taxes. Asset protection is the positioning of assets to make them unattractive and legally unreachable by creditors, but available for financial goals and needs.

Sound asset protection does not encourage nor necessitate illegal acts such as perjury or concealment of assets in violation of law. The law itself recognizes asset protection as exampled by numerous provisions defining permitted and prohibited strategies. It is certainly possible to affect an asset protection plan legally. There is no need to violate any law or regulation.

Even those with ethical objections can still adopt an asset protection plan and then if a rightful claim later arises, surrender their assets.