The most important limitation and obstacle to Asset Protection Planning is the Fraudulent Transfer Law.  This law provides that a debtor cannot transfer assets if the principal reason for the transfer is to prevent present or future creditors from gaining access to these assets.  The language of “delaying, hindering, or defrauding” creditors is the basis of setting aside transfers by creditors against debtors.  Normally, in order for the transfer to be classified as fraudulent, the transfer involved, when taken into account with the potential amount of the creditor claim, has to make the transferor insolvent.  The consequences of the Fraudulent Transfer Law make it imperative that the business owner or professional implement Asset Protection strategies before a creditor claim arises.  Once the facts occur which give rise to the creditor claim, planning is much more difficult (although there are still some steps that can be taken in the appropriate circumstances).