When people talk about "asset protection" they are generally referring to protection against potential creditors. If someone sues them they don’t want ‘their’ assets falling into the hands of creditors. Ultimately this means protection on bankruptcy. But bankruptcy is not the only way assets can fall into the wrong hands. Other ways to lose assets: Death Death is another situation where assets can fall into the wrong hands. Wills can be invalid, challenged, gifts fail, beneficiaries predecease you etc. Incapacity is another risk. Rogue attorneys, wrong attorney, no attorney and court appoints, sale of gifts to prevent assets going to people via your will etc. family law Spouse getting your assets, spouse's attorney grabbing control, lovers claiming defacto status etc losing control of trusts Not many think about this. Pre death and post death. Discretionary Trust assets do not belong to any individual but are controlled by the trustee. It is possible for the trustee to be removed, either by workings of the deed or by the courts. Look at the recent Reinhardt trust case for example.