Lesson 14 of 19 · 4 min read · Updated November 2026
Module 7.1: Protecting Your Assets Legally
Short answer: Asset protection is layered: insurance first, then entities like LLCs to separate risks, then trusts for larger estates. The right setup depends on your state and how much you own.
Key takeaways
- Insurance, including an umbrella policy, is the first line of defense.
- LLCs separate personal, rental and business assets.
- Trusts help with protection, probate and estate planning for larger estates.
- Review the structure as your net worth grows.
🎁 Schedule your free, 45-minute estate planning strategy session with estate planning team and learn how to ensure your family avoids probate and receives your assets and property
🛡️ Insurance Essentials: Discover how umbrella insurance can add a layer of protection, often for less than people expect, so get quotes for your situation.
🏢 LLC Structures Simplified: Learn to separate personal, rental, and business assets to minimize liability.
🎁 Download your Family Emergency Binder (This is the “incase I die document” you will pass down to your loved ones)
💼 Advanced Trusts: Explore irrevocable trusts for high-net-worth protection and estate tax benefits.
04:41 Insurance: The First Line of Defense
07:35 Setting Up Entity Structures
13:29 Advanced Strategies for High Net Worth Individuals
16:28 The Importance of Trusts
21:37 Review and Adjust Your Strategy
23:11 Practical Examples and Case Studies
This video gets into more advanced asset protection for higher net worth investors on the second floor of the Wealth Elevator and higher
2026 updates
The federal estate and gift tax exclusion is $15 million per person for 2026 under the 2025 tax law; see IRS what's new for estate and gift tax. U.S. LLCs and other domestic companies no longer have to file beneficial ownership reports under the Corporate Transparency Act after FinCEN's March 2025 rule; see the FinCEN beneficial ownership information page.
From my own investing
The asset protection ladder I wish I had built earlier
From 2009 to 2012 I owned close to a dozen rental properties. I was an engineer stacking up small deals, and asset protection wasn't on my radar. I was more worried about finding the next deal than what would happen if a tenant fell down the stairs. Looking back, I got lucky. A few years later a lawyer scared me straight, and I set up LLCs by state that rolled up under a holding company.
Talk it through with us
Asset protection setups vary a lot. Hearing what other investors built helps you ask better questions.
Join the club and book your onboarding call
Joining is free.
The podcast behind this course
The Wealth Elevator Podcast
Weekly conversations on passive real estate, alternative investments and tax strategy for busy professionals.
Listen on Apple PodcastsWatch on YouTubeThis is educational content, not tax or legal advice. Please let us know if you need a referral to 💼 CPA ⚖️ Lawyer or other vendor here.
This content is provided for informational and educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Investing involves risk, including loss of principal. Past performance does not guarantee future results. Read the full disclaimer.