CA Residents Protect your Assets through State Exemption

[Brian Bradley]

If you are a CA resident searching about Asset Protection one option for your, if you qualify,  is the Private Retirement Plan (PRP) which provides one of the highest levels of protection for your assets. PRPs are ideal for small - medium size business owners, or executives with higher salaries and investment properties, or investors using cash flowing properties for both their living expenses and for retirement. 

With our litigious and predatory society there are few purely domestic asset protection planning strategies that offer California residents "true" or "full" Asset Protection. The great thing is that being a California resident, besides good weather, is that you have an additional option to exempt and protect your assets that is not well known but is exclusive for CA Residents; the Private Retirement Plan (PRP).

A PRP is a retirement plan that FULLY EXEMPTS ALL trust assets from any creditor attack, so long as it is reasonable and designated for future use in retirement. In 1970 California instituted its’ state exemption law that assets owned in a private retirement trust are fully exempt under statute. PRPs are specifically designed to enforce your legal exemption right to protect assets from lawsuits and attacks.

ERISA-oriented plans like 401(k)s and RIRAs seek tax deductions for contributions. PRP instead prioritize and protect private assets that already have inherent tax benefits. Instead of seeking sources of income or assets that can be used for tax deductions like IRAs, you can contribute to your PRP as they are earned with little to no restrictions on the amount. Since funds and assets are only allocated to a PRPs after they have been taxed, contributions are not deductible, therefore any private or appreciating asset can be put into a PRP without limits. If you can’t save up enough money for a traditional retirement plan or if you would like to maintain control of your assets and save for retirement on your own terms, a PRP might be for you.