Updated May 21, 2025
I have often been asked why I use an Arizona LP vs. Nevada or WY. This is an important question and critical to understanding how the full asset protection structure works in harmony. I my opinion, the ideal asset protection structure for most clients includes an Arizona AMLP with a Wyoming LLC as the GP. This is then s a strategically connected with the Bridge Trust (BT) for an ultimate asset protection structure. This is due to the following reasons:
Structural Advantages
1. Arizona AMLP = Ideal Duress Exit Strategy
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A.R.S. § 29-333 allows the LP (i.e., the Bridge Trust) to withdraw upon a specified event, and you can tie this directly to the Event of Duress in the Bridge Trust.
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This creates a contractual and statutory pathway for the BT to demand a distribution and move assets offshore without requiring GP cooperation at that moment.
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Arizona law provides predictable charging order protection, and when the LP is a BT, the vulnerability of default withdrawal becomes an exit mechanism, and a specific statutory strength not available .
2. Wyoming GP = Manager Privacy + Protection
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By forming the General Partner as a Wyoming LLC, you get:
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Strong privacy: Wyoming does not require listing of members/managers in public filings.
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Charging order protection for the GP entity itself.
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Severability: If a claim arises against the GP individually, its Wyoming LLC status buffers liability from reaching the LP structure.
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This decouples the identity and exposure of the control party (GP) from public visibility, which is especially important in high-profile or high-net-worth asset protection cases.
Asset Protection Synergy with the Bridge Trust
3. BT as LP = Foreign Trigger Mechanism
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When the Protector declares an Event of Duress, the BT:
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Triggers the Arizona AMLP withdrawal clause;
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Demands full capital account distribution;
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Gains control of those distributed assets (cash or in-kind);
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Moves jurisdiction offshore (Cook Islands);
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Places the assets beyond U.S. court jurisdiction via successor trustee.
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This conversion from domestic to foreign protection is seamless because of the BT’s structure and the AMLP’s express duress-triggered withdrawal rights.
4. Preserves U.S. Tax Compliance
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While under normal conditions the BT remains a U.S. domestic grantor trust, pairing it with a domestic Arizona AMLP allows full U.S. tax transparency and reporting.
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This avoids the complexity and scrutiny of a foreign trust—until it’s needed.
Legal and Strategic Summary
| Element | Arizona AMLP | Wyoming GP | Bridge Trust |
|---|---|---|---|
| Asset protection | Strong charging order + duress withdrawal | Strong privacy + limited liability | Converts to FAPT upon duress |
| Statutory withdrawal | A.R.S. § 29-333 supports specified event withdrawal | GP agreement enforces distribution | Triggered by Protector |
| Privacy | Moderate (GP name public) | High (LLC member privacy) | Full trust instrument private |
| Offshore exit | Pre-negotiated through agreement | Operates GP role domestically | Takes control offshore on duress |
| Tax compliance | U.S. jurisdiction until duress | Domestic entity | 7701-compliant; grantor trust |
Ideal Use Case
This structure is particularly ideal for:
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High-net-worth individuals who want maximum protection with full domestic control until under threat;
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Those seeking to avoid the look and burden of a foreign trust while maintaining real escape power;
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Clients who need flexibility, stealth, and teeth—and who are sophisticated enough to maintain proper trust operations and funding procedures.
An Arizona AMLP + Wyoming GP + BT = optimal asset protection structure for clients prioritizing:
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Domestic control and U.S. compliance,
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Statutory and contractual precision,
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And a nuclear-option foreign transition that is prewired, fast, and court-resistant.
Lodmell & Lodmell, PC is one of the nations leading Asset Protection Law Firms and the creators of The Bridge Trust®. L&L serves clients nationwide and may be reached at support@lodmell.com or 602-230-2014.
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