Legal Question in Civil Litigation in California

Insurance. Insurance companies wouldn't be in business if they weren't cheaper, more effective, and easier than any cockamamie asset protection scheme.

Contrary to what many real estate guru's and some attorneys will tell you, Mr. McCormick is basically correct. If you hit someone with your car, the best defense is a large amount of personal liability coverage. The insurance company pays for a good defense attorney and all the costs of suit, they are required to try to settle the case for no more than your policy limits so that you do not have to pay anything [except later increased insurance premiums], and most plaintiff's attorney will settle for policy limits, unless you really irritate them. The same is true for injuries related to your house or rental property. The likelihood of anyone going after your other assets is not very great. if you are engaged in a business, active real estate investments, dealing unfairly with people, etc., you might need an LLC, trust, etc.

Insurance in place before the incident which gives rise to the lawsuit, assuming that it is insurable. (Intentional torts are not insurable.) After a lawsuit arises, the only thing that will help is bankruptcy, again assuming that the debt is dischargeable, i.e. negligence or contract, but not intentional torts such as fraud or battery.