Asset Protection Planning
Asset protection planning is another important safeguard to keep in mind as you build the master plan for your estate.
As a part of the estate planning process, it’s important to have asset protection planning attorneys direct your wishes. This way, everything will be laid out exactly how you want by experts who understand the nuances of asset protection planning.
The first step to adding asset planning to your estate plan is by contacting a knowledgeable asset protection attorney for a free consultation.
What Is Asset Protection?
Asset protection is the application of certain strategies and laws to protect personal and business assets from creditors, former spouses, and other parties. As an added benefit, you may be able to lower estate and income tax. Assets that might be covered by an asset protection plan include properties, businesses, bonds, stocks, investment accounts, savings, and more.
What’s the Difference Between Asset Protection and a Living Trust?
The difference between asset protection and a living trust is that an asset protection plan can provide you with creditor protection during your lifetime, while a living trust can provide asset protection for your heirs after you die. With Asset protection planning, your assets are protected from being seized by your creditors while you’re alive. Living trusts can protect your loved ones from their creditors, lawsuits and ex-spouses after you die.
Is Asset Protection Legal?
Yes, asset protection is not only legal, but a wise decision for conscientious individuals who want all of their hard-earned wealth properly secured. Asset protection, when set up correctly and in advance, involves no concealment, fraud, or tax evasion. An experienced asset planning lawyer will be able to ensure your assets are protected by the law.
Asset Protection Strategies
There are many strategies that can help build a hedge around your assets. Just a few of these include:
- Business succession planning
- Nuptial agreements
- Family limited partnerships
- Limited liability companies
- Irrevocable, offshore, or asset protection trusts
Your lawyer may determine that some or all of these strategies are applicable to your assets. A certain combination of these strategies may be the perfect way for you to receive the maximum benefit.
What Are Asset Protection Trusts?
Asset protection trusts may lower or completely eliminate death taxes on your estate by removing certain assets from the estate without losing control of the assets. High net worth individuals will particularly benefit from this kind of trust.
Which United States Jurisdictions Allow for the Creation of Asset Protection Trusts?
You can create asset protection trusts in these states:
- Alaska
- Delaware
- Hawaii
- Missouri
- Nevada
- New Hampshire
- Ohio
- Oklahoma
- Rhode Island
- South Dakota
- Tennessee
- Utah
- Virginia
- Wyoming
Even if you don’t live in one of these states, however, asset protection attorneys have other tools available that can provide excellent protection for what’s rightfully yours. It’s all a part of the estate planning process.
Is There a Difference Between Asset Protection and Estate Planning?
Yes, there is a big difference between asset protection and estate planning. Estate planning is the big picture. It is the total umbrella above all plans for your possessions. Asset protection is just one part of your estate plan. A lawyer will be able to integrate this essential aspect of your total estate after you reach out.
Start Your Advance Planning Strategy Today
Effective asset protection requires advance planning. If you wait until after a liability event has occurred, it’s too late. Start the process now so that when the time comes or the need arises, you already have the legal protections in place. Contact us to schedule a free consultation through LiveChat or by calling 602-667-7777 .
Lerner and Rowe have partnered with Trajan Wealth and Estate for their knowledge on Estate Planning. The Trajan Wealth team will be reaching out to schedule your appointment. Information on Trajan Wealth can be found at https://trajanwealth.com/estate-planning/.