Asset Protection Planning in Colorado, Arizona, and California
Asset protection planning is careful, legal work that lowers the risk of losing property to a future lawsuit or debt. It should be done before any claim exists. Attorney Daniel R. Klein helps families, landlords, and business owners in Colorado, Arizona, and California weigh options like insurance, LLCs, and certain trusts, and explains their limits honestly.
In Colorado
Colorado is not a community property state.
In Arizona
Arizona is a community property state.
- Reviewed by
- Daniel R. Klein, attorney
- Last reviewed
This page is general information about Colorado and Arizona law as of . It is not legal advice.
Who should think about asset protection?
- You own rental property.
- You own a business, or you work in a field where people sometimes sue.
- You want to leave something to your children with some protection built in.
- You’re nearing retirement and want to review how your home and savings are titled.
- You’ve heard about “asset protection trusts” and want honest answers.
What can asset protection do?
Asset protection is planning that makes your property harder for future creditors to reach. A creditor is anyone you owe money to, including someone who wins a lawsuit against you. Good planning often uses a few layers:
- Insurance. Liability and umbrella policies are often the first and simplest layer.
- Business entities. An LLC, or limited liability company, is a business structure that can keep business risks apart from your personal property.
- Irrevocable trusts. An irrevocable trust is a trust you generally can’t change once it’s signed. In some cases it can protect property for your family.
- Protected gifts to heirs. A spendthrift clause is a trust rule that limits a beneficiary’s creditors from reaching their share.
What can’t asset protection do?
It can’t hide property, and it can’t erase a debt you already owe. Moving property after a claim exists can be undone by a court. It can also cause bigger legal and tax problems. And a living trust alone doesn’t protect you from creditors, because you still control it.
How does asset protection planning work with us?
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Review your risks
Daniel R. Klein looks at what you own, how it’s titled, and what insurance you have.
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Explain your options
You’ll hear the choices in terms you can understand, including their costs and trade-offs. There’s no wrong answer about how much protection you want.
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Work with your team
With your OK, we coordinate with your CPA, financial adviser, or insurance agent.
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Put the plan in place
That can mean forming an entity, drafting a trust, or retitling property.
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Check in over time
We review the plan when your life or your property changes.
Is asset protection different in Colorado and Arizona?
The main tools are the same in both states. Two rules work differently.
In Colorado
Colorado is not a community property state. A Colorado beneficiary deed passes a home at death, but it does not protect the home for Medicaid, the program that pays for long-term care. If you apply for Medicaid while a Colorado beneficiary deed is in effect, you’re still treated as owning the home, and it counts as your resource (C.R.S. 15-15-403).
In Arizona
Arizona is a community property state. Property either spouse gets during the marriage generally belongs to both (A.R.S. 25-211). Both spouses must join in real estate transactions (A.R.S. 25-214). That shapes how a couple can title property and who must sign.
What should I bring?
- A list of any businesses or LLCs you own, with formation documents if handy.
- Your insurance summary pages for home, auto, umbrella, and business policies.
- Deeds for any homes or rental properties.
- Any trusts you’ve already signed.
- A short note about any claim or lawsuit that’s been threatened. We’ll talk about it on the call.
You can also print our what to bring checklist.
Please don’t email private documents, like account statements or medical records. We’ll tell you how to share them safely.
What does it cost?
You’ll get a written quote before any work begins. See how our fees work.
Questions people ask
Can I protect my assets after I’ve been sued?
Usually not in the way people hope. Moving property after a claim exists can be undone by a court, and it can make things worse. Planning should happen long before any problem appears. If you’ve already been sued or threatened, talking with a lawyer before you move anything can prevent bigger problems.
Is a living trust a form of asset protection?
No. A revocable living trust helps your family avoid probate. But it doesn’t protect your property from your own creditors, because you can still change it or take property back out (A.R.S. 14-10602; in Colorado, C.R.S. 15-5-602 for trusts signed on or after August 7, 2013). Other tools, like some irrevocable trusts, work differently.
Is asset protection planning legal?
Yes, when it’s done openly, ahead of time, and without hiding anything. Courts look closely at transfers made to dodge a debt someone already knows about. Our job is to help you plan within the rules, and to tell you plainly when an idea crosses the line.
Should my rental property be in an LLC?
Maybe. An LLC can keep one rental’s risks apart from your other property. It also adds paperwork and upkeep, and insurance still matters. We’ll look at your properties with you, and with your CPA if you like, before you decide.
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