Asset Protection can be fairly simple, but may also be very complicated. Some common mistakes, with very serious consequences, are listed below:

• Transferring a Primary Residence into a Corporation or FLP- Automatic loss of $250,000 ($500,000 if married) capital gains tax exemption upon the sale of a personal residence.
• Transferring passive investments to a C-Corp- Personal holding corp taxes up to 50%.
• "Bearer Share" Corporations are now illegal in the US! more
• Holding "safe" and "high risk" assets in the same Limited Liability Company.
• Transferring assets or a home into a "Living Trust" in order to protect assets- Creditors can quickly seize such assets. These trusts offer Zero asset protection from creditors.