Asset protection refers to strategies and legal methods used to safeguard an individual's or business's assets from potential claims, lawsuits, or creditors. This can involve various techniques, such as creating trusts, forming limited liability companies (LLCs), or purchasing insurance. The goal is to minimize the risk of losing valuable property or finances due to unforeseen circumstances. Effective asset protection requires understanding local laws and regulations, as they can vary significantly. Individuals often consult with financial advisors or legal professionals to develop a tailored plan that aligns with their specific needs and goals, ensuring their assets remain secure against potential threats.