Asset Protection is the process of using irrevocable, asset-protection trusts, domestic and offshore venues, life insurance and other legal entities and strategies to protect your accumulated wealth. Asset protection essentially removes assets from your estate, while allowing you to continue to enjoy the benefits from these assets. In some cases, you may also be able to mitigate (and possibly eliminate) state income tax and federal estate/gift tax on these assets. An asset protection trust can also be a useful alternative (or addition) to a pre-nuptial arrangement where one spouse has significantly more assets than the other.