Auto Accident & Liability Protection
One Accident. Everything You Own Is Now at Risk.
Over the past 25 years we have represented hundreds of clients who were involved in traffic accidents. Our clients include those who have run over pedestrians or bicyclists or crashed into other cars and motorcycles. We have also represented many parents or family members whose loved one were involved in accidents while using their car and who faced lawsuits for a negligent entrustment of a car.
Your Insurance May Not Be Enough
If you were in a car accident and the other party was injured, your personal assets could be exposed. When claims exceed policy limits, everything above comes from you personally.
California’s minimum liability coverage is $30,000 per person. Even higher limits can be overwhelmed when injuries are serious. A single accident can generate claims in the millions.
We have protected the assets of hundreds of clients facing a tort claim from an auto accident. Call us to learn how to protect your assets when the plaintiff’s claim exceeds your insurance coverage or read on!
Hundreds
Clients Represented
25 Years
Asset Protection Experience
~30%
Of Plaintiffs Walk Away Entirely
Why the Plaintiff’s Lawyer Matters
Most litigated accident cases are not pushed by the victim, but by the plaintiff’s lawyer. The plaintiff’s lawyer is working on a contingency basis — he gets paid only if he prevails in the lawsuit and then collects on the judgment.
If we can make it more expensive and more difficult to collect, he may be reluctant to move forward with litigation. Asset protection changes the economics of the case in your favor.
How Personal Assets Get Dragged In
1. Asset Searches
The plaintiff’s attorney runs asset searches. They find your home, savings, investments.
2. Insurance Steps Back
Your insurance defends you up to the limits and steps back. Everything above is on you.
3. Collection Begins
Bank levies, property liens, wage garnishments.
A Story You Should Hear.
With Protection
97 Years Old. First Accident. Protected.
One of our clients was 97 years old. Seventy-five years of driving without a single accident. One Sunday, she was driving a friend to church and bumped a parked car.
The next morning, her “friend” hired a personal injury attorney. The claim exceeded her policy limits.
Because she had asset protection in place, her life savings were protected. Without it, nearly a century of accumulation would have been exposed over a fender-bender.
Outcome: Her life savings were fully protected. The claim was resolved without personal loss.
Without Protection
No Planning. Full Exposure.
A client came to us after a serious accident. His insurance paid its policy limit and stepped away. The remaining claim was in the hundreds of thousands.
His home had significant equity. His savings were in personal accounts. No protective structures were in place.
Without planning done before the claim arose, options were severely limited. What could have been protected with advance planning was now exposed.
Outcome: Personal assets were exposed to the full remaining claim.
We have protected hundreds of clients facing accident claims. Learn what’s possible.
Or call 818-933-3838
The Structures We Use
Asset protection is not a single product. It is a combination of legal structures tailored to your specific situation. There are dozens of structures we use for clients. We consider such factors as the timing of asset protection (before or after there is a claim or a lawsuit), how well our client wants to protect her assets, how aggressive and diligent the creditor is likely to be, and what are the specific assets that need to be protected. Here are the most commonly used structures for clients facing a tort claim:
An irrevocable trust established in a favorable state removes your assets from personal ownership while preserving your ability to benefit from them. A trust protector you select has the power to amend the trust, change trustees, and return assets to you if circumstances change. No income tax or gift tax consequences. No separate tax return required. Works identically to a living trust for tax purposes.
These start as domestic trusts but contain provisions allowing automatic conversion to a foreign trust if a judgment exceeds your insurance coverage. The foreign jurisdictions we use do not recognize U.S. court judgments, have short statutes of limitation, and require creditors to post substantial bonds before even filing a claim. Domestic simplicity with offshore protection when you need it.
If you are married, converting community property to separate property of the non-exposed spouse can immediately shield half or more of your assets from the claim. In California, a creditor of one spouse can reach all the community property, not just 50%. A transmutation agreement changes that. We structure these as equal splits, which makes them harder to challenge. The agreement itself is private, only a memorandum and quitclaim deed are recorded for real estate, and it can be reversed at any time. No income tax consequences.
Removing accessible equity from your home and investment properties so that even if a plaintiff records a judgment lien, there is nothing to collect.
California law exempts certain retirement assets from creditor claims. We can structure a private retirement plan that protects significant assets under this exemption, separate from your existing 401k or IRA.
When all else may fail, offshore asset protection structures come to the rescue. In our experience, there is no safer way to protect assets than with an offshore structure, like an offshore trust or asset management foundation.
Insurance Gaps
Umbrella policies help but have limits and exclusions. The real gap is between your total coverage and your total exposed assets. Asset protection addresses that gap.
The goal of asset protection is to change the economics of collection so that the plaintiff’s attorney has little incentive to pursue your personal assets. That changes outcomes.
When to Act
The best time to protect your assets is before an accident happens. But if an accident has already occurred, the next best time is now — before a claim is filed or a judgment is entered.
Even after a lawsuit is filed, options often remain. The goal shifts from prevention to damage control, and our experience with hundreds of accident clients gives us a clear view of what is still legally available to you.
Common Mistakes
Assuming insurance covers everything
Waiting to see how the claim develops
Moving assets to a spouse without a proper transmutation agreement
Discussing the accident on social media
Not having enough coverage
Learn More
How Domestic Asset Protection Trusts Work
Remove assets from personal ownership while preserving your ability to benefit from them.
How Transmutation Agreements Work
Convert community property into separate property to limit spousal liability exposure.
How Private Retirement Plans Work
Protect significant assets under California’s retirement asset exemption.
Take the First Step
If you have already been involved in a traffic or other accident and you are concerned that you may be sued, or you have already been sued, contact us immediately and we’ll explore your asset protection options together. We will assess your coverage, evaluate your exposure, and explain your realistic options.
This is attorney advertising. The information provided is for general informational purposes only and does not constitute legal advice. Contacting Aliant LLP does not create an attorney-client relationship. Past results do not guarantee future outcomes. Every case is different and must be evaluated on its own facts.