Asset Protection in Washington, D.C.
If you want to protect your savings, home or business from a future lawsuit in the District, start with what D.C. protects automatically, which is less than most people assume. D.C. Code § 15-501 shields $2,575 in one vehicle, $8,625 in household goods and $1,625 in tools of a trade, plus qualified retirement plans, Social Security and certain insurance and support payments. Beyond a small general allowance, bank and brokerage balances are exposed.
Real protection comes from structure in place before a claim exists. William J. Brown, our Managing Partner, who is licensed in D.C., designs it for District owners. We do not plan to defeat a creditor you already have.
What D.C. law protects, and where the gaps are
The exemption statute protects a head of a family or householder. Qualified retirement plans are exempt, except against an alternate payee under a qualified domestic relations order and claims owed to the District. A residence is exempt with no dollar figure stated, but not against a deed of trust, mortgage, mechanic's lien or tax lien.
Entities carry most of the load. Under D.C.'s Uniform Limited Liability Company Act, a judgment creditor of a member is limited to a charging order on distributions (§ 29-805.03). But if a court forecloses a charging-order lien against a sole member, the buyer takes the entire interest, becomes the member, and the debtor is dissociated. A one-member LLC is therefore weaker protection against its owner's personal creditors than an LLC with real co-members.
Trusts do less than people expect. A settlor's creditors can reach a revocable trust and the maximum amount distributable to the settlor of an irrevocable one (§ 19-1305.05), so a trust funded for your own benefit does not put assets out of reach. Married owners have a District-specific route: tenancy-by-the-entirety property keeps its immunity from either spouse's separate creditors after moving into a trust, if the couple stays married, both remain beneficiaries and the property stays in trust (§ 42-516(d)).
Entity Structuring
Property-level LLCs and holding companies built around the charging-order rule, with real members and consistent operations.
Entireties and Spousal Trust Planning
Deeds and trust terms that preserve tenancy-by-the-entirety immunity under § 42-516(d).
Exemption and Exposure Review
A written map of what § 15-501 protects in your situation and which gaps a structure can close.
Transfer Timing Review
Review of a proposed transfer against the fraudulent transfer statute before you make it.
What property can creditors not take in Washington, D.C.?
Under § 15-501, a head of a family or householder keeps one vehicle up to $2,575, household goods up to $8,625, tools of the trade up to $1,625, qualified retirement plans, Social Security and veterans' benefits, and a residence interest, subject to the lien exceptions above.
Does an LLC protect my rental property from my personal creditors?
Partly. A judgment creditor of a member is limited to a charging order on distributions, but a court can foreclose a sole member's interest and the buyer takes all of it (§ 29-805.03). A genuine co-member and a separate, capitalized entity strengthen the structure.
Can a trust protect my home from creditors in D.C.?
Not a revocable trust, and not a trust you can draw from yourself (§ 19-1305.05). Spouses holding a home as tenants by the entirety can keep that tenancy's creditor immunity in a trust if both remain beneficiaries and married (§ 42-516(d)).
How far back can a creditor challenge a transfer?
A transfer for less than reasonably equivalent value while insolvent can be set aside by existing creditors (§ 28-3105), generally within 4 years (§ 28-3109). A judgment recorded with the Recorder of Deeds is enforceable for 12 years (§ 15-101). Plan while solvent and before a claim arises.
Facing an asset protection question in Washington, D.C.?
The first consultation is confidential, and we respond within one business day. Tell us what you own and what you want to protect it from.