Asset Protection Readiness Rule
Act before litigation when wealth or liability makes you a target
- Difficulty
- Moderate
- Time to result
- ~months to results
- Steps
- 4
- Confidence
- 98%
Harris uses two inputs to decide when asset protection deserves action: accumulated wealth and exposure to liability. Around one million dollars in net worth is a prompt to investigate a plan, while roughly two million dollars in assets makes the target more attractive to a plaintiff's attorney. The threshold moves lower for people with elevated exposure, including attorneys, engineers, and parents whose children drive a car they own. Timing is the controlling condition. Planning while circumstances are calm can produce a stronger result; waiting until a lawsuit exists may leave only damage mitigation. The output is not automatic purchase of an offshore trust, but a timely professional assessment before the owner needs the protection.
Origin
Extracted from Coffeez for Closers, where Blake Harris explains the wealth thresholds and liability factors he uses to identify when entrepreneurs should consider protection.
Core principles
- 01Protection works best before a claim arises
- 02Net worth and liability exposure both determine urgency
- 03The cost of a judgment matters relative to the owner's wealth
- 04A plan should create both negotiating leverage and peace of mind
How to run it
- 1
Measure exposed wealth
Estimate net worth and identify assets that could be vulnerable to a judgment. Use one million dollars as a prompt for review rather than assuming protection is only for the extremely wealthy.
Pro tip Evaluate the effect of a judgment relative to the owner's standard of living, not wealth in isolation.
Watch out A high net worth does not make every possible judgment immaterial.
- 2
Identify liability multipliers
List professional, business, and household exposures that raise the chance or impact of a claim. Increase urgency when those risks are present even below the usual wealth threshold.
Pro tip Include liabilities created by property or vehicles the owner controls.
Watch out Do not rely on net worth alone when exposure is unusually high.
- 3
Apply the timing gate
Determine whether litigation is absent, threatened, or pending. Seek assessment while circumstances are calm because options and outcomes narrow after a claim appears.
Pro tip Make the review part of wealth planning rather than an emergency response.
Watch out Waiting until a lawsuit is filed can turn prevention into damage mitigation.
- 4
Obtain a fit assessment
Have a qualified attorney evaluate whether any asset protection plan is appropriate and which structure fits. A responsible assessment may conclude that the proposed provider or structure is not the right fit.
Pro tip Ask what risks the proposed structure does and does not address.
Watch out The threshold is a review trigger, not a universal prescription.
In the wild
Harris says an attorney, engineer, or parent with children driving a car the parent owns may face enough additional exposure to consider asset protection before reaching one million dollars in net worth.
→ The decision reflects both the assets at stake and the likelihood of a claim.
Harris contrasts a person worth three hundred million dollars with a person worth three and a half million dollars. A five-million-dollar judgment may not change the first person's life but could devastate the second person's standard of living.
→ Protection urgency is judged by potential impact, not by whether someone appears exceptionally wealthy.
Common mistakes
Assuming protection is only for the super rich
Harris says many people who are sued and many clients who establish plans hold far less than extreme wealth.
Waiting for a lawsuit
Once litigation exists, the available result may be materially weaker than a plan established beforehand.
Is it for you?
Best for
It is best for successful US entrepreneurs, professionals, and families whose growing assets or liability exposure make a lawsuit materially damaging.
Not ideal for
It is not a substitute for individual legal and tax advice or for assessing an already-pending claim.
From the transcript
“So generally, once their network gets to around a million, that's when they should look at setting up some type of asset protection plans.”
“You're at an increased risk, and maybe even before you get to a million, you should be looking at setting up an asset protection plan.”
“If you wait until you've been sued, we may be able to do something to mitigate damage, but the result that you're going to get…”
From the episode
Offshore Asset Protection Lawyer Explains Cook Islands Trusts ft. Blake Harris
Blake Harris