Asset Protection & Wealth Protection

A Wyoming Holding Company serves as the foundation of an asset protection plan.
By owning your businesses, real estate, and intellectual property through a parent company in Wyoming, a state known for its strong privacy laws and robust charging order protection, you can separate ownership from daily operations and minimize personal liability. A Wyoming Holding Company:

A Wyoming Limited Partnership (LP) adds another layer of protection and control to your asset protection structure. In this setup, the Limited Partnership owns your Wyoming Holding Company, creating separation between ownership, management, and liability.

Within the partnership, the Limited Partner, typically you, owns 99% of the partnership interests. The General Partner,  structured as a Wyoming LLC, holds 1% and manages the partnership. Because the General Partner carries management authority, it technically bears liability exposure. However, since that exposure is limited to only 1%, any potential risk is minimal. This design ensures that your wealth remains protected even if the General Partner is ever sued.

A Domestic Asset Protection Trust (DAPT) is an advanced legal structure that allows you to protect your assets from future creditors while maintaining some control as the grantor.
When properly drafted and administered, a DAPT can hold your business interests, investments, or real estate  shielding them from judgments, lawsuits, and personal liabilities.

Wyoming, Nevada, and Delaware are among the strongest states for DAPTs, offering statutory protection and privacy benefits. This strategy is ideal for professionals, business owners, and investors who want peace of mind knowing their assets are protected against unforeseen legal claims.

For higher net worth individuals or those with greater exposure, an Offshore Asset Protection Trust (OAPT) provides the ultimate layer of protection. Established in jurisdictions like the Cook Islands or Nevis, these trusts place assets under the protection of foreign laws that make it extraordinarily difficult, and often impossible, for U.S. creditors to access them. Offshore trusts are used strategically, often alongside a domestic trust or holding company, to create a multi-jurisdictional shield that ensures complete control, privacy, and legal separation from potential claims.

An Irrevocable Life Insurance Trust (ILIT) is one of the most overlooked yet powerful estate and asset protection tools. By transferring ownership of a life insurance policy to a properly structured trust, you remove the policy’s death benefit from your taxable estate — while also shielding it from creditors. An ILIT ensures that your loved ones receive the full benefit of your policy without interference from taxes, probate, or potential claims. It’s an essential piece of any long-term wealth preservation plan.

In many states, the estate tax threshold is significantly lower than the federal exemption. This means that even families who don’t consider themselves “ultra-wealthy” can face substantial estate taxes upon death. Without proper planning, a large life insurance payout could unintentionally increase the size of your taxable estate, resulting in your beneficiaries receiving far less than you intended.

A Section 453 Deferred Sales Trust is a powerful tax-deferral and asset protection strategy used to defer capital gains taxes on the sale of highly appreciated assets, such as real estate, businesses, or stocks, while preserving and reinvesting the full sale proceeds.

The DST operates under Internal Revenue Code §453, which governs installment sales. Instead of selling your asset directly and triggering an immediate capital gains event, you sell it to the Deferred Sales Trust in exchange for an installment note. The Trust then sells the asset to the ultimate buyer and receives the sale proceeds. Because you’re paid over time, your tax obligation is also spread out, allowing you to control when and how you recognize income.

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Cash Value Life Insurance, including Indexed Universal Life (IUL) and Whole Life, offers protection, growth, and liquidity. When used correctly, these policies can grow tax-deferred, allow tax-free access to cash value through policy loans, and provide a death benefit that transfers outside of probate.

At MarkSetGo Law, we often integrate cash value life insurance with holding companies or trusts, using it as a private bank (“be your own bank”. It can serve as a family bank, a business liquidity source, or a legacy funding tool, all while remaining protected from creditors and market volatility.