Katzner Law Group helps individuals and families in New York reduce financial and legal exposure through thoughtful, proactive asset protection planning. When your assets face potential threats from creditors, lawsuits, divorce proceedings, or long-term care costs, the decisions you make today determine how well those assets are protected tomorrow. Working with a New York asset protection attorney means putting legal structures in place before those threats materialize, which is when the law gives you the most flexibility to act (if you don’t act until a claim presents itself, you can typically assume it’s too late). Understanding what asset protection planning involves, who typically benefits from such planning, which tools are available under New York law, and how this type of planning fits within a broader estate plan is the foundation of any meaningful asset protection strategy.
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Asset protection planning is the process of arranging your finances and legal structures in a way that reduces your exposure to future creditors, judgments, and other claims. The goal is not to hide assets or evade legal obligations. It is to take full advantage of the tools that New York law makes available to individuals who plan ahead responsibly.
The distinction between lawful asset protection planning and fraudulent transfers matter enormously here. Under New York Estates, Powers and Trusts Law § 7-3.1, a disposition in trust for the benefit of the creator is void as against existing or subsequent creditors of the creator. This means that transfers made after a creditor threat has already arisen may be challenged and unwound. Planning completed before any claim exists, by contrast, stands on far more solid legal ground.
Asset protection planning addresses a wide range of risks: professional liability, business disputes, divorce, personal injury judgments, and the cost of long-term care. Each of these can quickly erode wealth that took years to build. A well-designed asset protection plan accounts for the full picture.
Asset protection planning is not reserved for the ultra-wealthy. Many people across a range of professional and financial circumstances have real exposure that standard estate planning alone does not address.
Physicians and other licensed professionals face personal liability risk that extends beyond their practice. A judgment against them professionally can, in some circumstances, reach personal assets if the right structures are not in place.
Business owners and entrepreneurs carry risk from commercial disputes, contract claims, and employee-related liability. Separating business and personal assets through properly structured entities is a foundational step for anyone running a company in New York.
Real estate investors hold assets that are frequently subject to litigation, including tenant claims, slip-and-fall injuries, and contract disputes. Each property can become a source of liability exposure if it is not held in an appropriately structured vehicle.
Executives and high-net-worth individuals accumulate assets over decades. Without a plan, a single judgment or creditor action can undo years of hard work and wealth building. For these individuals, proactive legal asset protection structuring is as important as investment strategy.
Regardless of profession or net worth, anyone who has meaningful assets and potential exposure to future claims will benefit from a conversation with a New York asset protection attorney to evaluate their current exposure, identify gaps in their existing plan, and put the right structures in place before a problem arises – as that’s the only time to plan.
New York law provides several well-established vehicles for protecting assets. The right combination depends on the type and value of your assets, your professional situation, and your long-term goals. Here is an overview of the tools most commonly used in asset protection planning:
Irrevocable Trusts
When assets are transferred into a properly structured irrevocable trust, they generally fall outside your taxable estate and beyond the reach of future personal creditors, provided the transfer is made before any claim arises. Under New York Estates, Powers and Trusts Law § 7-1.5, the interest of a beneficiary in an express trust generally cannot be transferred or assigned unless the trust instrument expressly permits it. This inalienability is precisely what gives irrevocable trusts their protective value.
Spendthrift Trusts
A spendthrift trust prevents a beneficiary from voluntarily assigning their interest in the trust and prevents creditors from reaching that interest before it is actually distributed. New York law recognizes spendthrift provisions as enforceable when properly drafted, making this a reliable tool for protecting assets held for future generations.
Limited Liability Companies (LLCs)
For business owners and real estate investors, an LLC creates a legal separation between personal assets and business liabilities. A creditor with a claim against you personally generally cannot reach assets held inside a properly maintained LLC, and a creditor with a claim against the LLC generally cannot reach your personal assets outside of it.
Tenancy by the Entirety
New York recognizes tenancy by the entirety for married couples holding real property jointly. This form of ownership provides protection against creditors of only one spouse, meaning a judgment against one partner alone generally cannot force a sale of property held in this form.
Exempt Assets
New York law provides certain built-in exemptions for assets such as retirement accounts, life insurance cash value, and annuities, though they are often for such small dollar amounts that they’re barely worth the protection afforded. Understanding which of your existing assets already carry statutory protection is an important first step when considering additional structures.
Gabriel Katzner has a track record, along with a vast number of outstanding public reviews across platforms, of working hard on behalf of individuals who need assistance with comprehensive estate planning services.
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Timing is the single most important variable in asset protection planning. The legal tools available to you are significantly more powerful when they are put in place before any creditor threat exists. Once litigation has been filed or a debt or creditor has become foreseeable, transfers made to protect assets can be challenged as fraudulent conveyances under New York law.
This is not an abstract risk. New York courts have unwound transfers that occurred after a creditor relationship was established, even when those transfers were made in good faith. The protection afforded by an irrevocable trust, an LLC, or a tenancy by the entirety arrangement depends in large part on when those structures were created relative to when any claim arose.
This means that the ideal time to begin planning is during a period of financial stability, not in response to a looming threat. Professionals in high-liability fields, business owners entering new ventures, and individuals undergoing major life transitions such as marriage, the birth of a child, or a significant increase in net worth should treat that moment as the right time to address asset protection planning. Waiting is the one choice that consistently narrows your options.
Asset protection planning and estate planning are not separate disciplines. They are complementary strategies that, when designed together, provide layered protection for your assets both during your lifetime and after your death.
A revocable living trust, for example, is a powerful estate planning tool that helps your family avoid probate and maintain privacy. It does not, however, provide any asset protection during your lifetime because you retain control over the assets. An irrevocable trust, by contrast, offers genuine creditor protection but requires you to, typically, relinquish at least some level of control (though who you relinquish it to, and how the plan is structured, is where an experienced asset protection planning attorney can add great value).. Understanding that trade-off, and designing a plan that uses both types of structures where appropriate, is where coordinated planning delivers the most value.
Medicaid planning is another area where the two disciplines intersect. The cost of long-term care in New York is substantial, and without planning, those costs can exhaust an estate that took decades to build. Certain irrevocable trust structures can help preserve assets for family members while positioning an individual for Medicaid eligibility, subject to applicable look-back periods and transfer rules.
Long-term wealth preservation requires a plan that accounts for what happens during your lifetime, at incapacity, and at death. A New York asset protection attorney who is also expert in the estate planning space can design a strategy that addresses all three phases in a unified, coherent document set.
Asset protection planning requires a precise understanding of New York law, careful attention to timing, and the ability to design structures that accomplish your specific goals without creating unintended tax or legal consequences. The tools described on this page are powerful when used correctly and problematic when used incorrectly.
At Katzner Law Group, Gabriel Katzner personally works with every client from the first strategy session through the final signing. His background in both law and tax / accounting gives him a perspective that is particularly valuable in asset protection planning, where legal structure and financial strategy are deeply intertwined.
Our process begins with a thorough strategy session, an Estate Plan Design Meeting, designed to understand your assets, your professional situation, your family structure, and your goals. From that foundation, we build a customized plan, walk you through it with clarity, and make sure you understand every document before you sign anything. After your plan is finalized, we remain available to you as your circumstances and the law evolve.
Asset protection planning is not a one-time transaction. It is an ongoing relationship with an attorney who understands where you are and where you are headed.
Protecting what you have built requires more than good intentions. It requires the right legal structures, put in place at the right time, by an attorney who understands New York law. Katzner Law Group is ready to help you evaluate your exposure, explore your options, and build a plan designed around your goals. To speak with a New York asset protection attorney, call us today at (855) 528-9637 to schedule your Estate Plan Design Meeting / strategy session.
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. Furthermore, it has received approval from attorney Gabriel Katzner, an experienced estate planning lawyer with over 17 years of legal expertise.