There are lots of different asset protection strategies available to help people try to preserve the wealth they have worked to acquire. Asset protection is a smart move that makes sense if you want to ensure bad luck or a twist of fate does not cost you everything. However, choosing the right approach to asset protection can be complicated and you don’t want to make any mistakes that could end up costing you.
Nirenstein, Horowitz & Associates can provide you with comprehensive advice on how to protect your nest egg. We represent people of all ages and all stages of growing and preserving wealth. You can give us a call at any time to talk with a Connecticut asset protection lawyer and learn about how we can create a personalized plan for you. Our legal team will assist you in identifying risks and selecting the asset protection strategies that work.
How to Identify Asset Protection Strategies That Will Work For You
The key to asset protection is using the right legal tools to address the specific risks that are relevant to your situation. For example, some people will find that the biggest threat they face comes from the risk their company will be sued and their personal assets will be on the line. Others are concerned that estate taxes will take a big chunk out of their estate or that their irresponsible kids will squander a lifetime of work once it is left as an inheritance. There are risks both during your life and after your death, and you need to plan ahead to mitigate those risks.
To start the process of developing asset protection strategies that work, you should consider which of the most likely causes of losses could affect you. Possible risks can include:
- Business lawsuits or company debts, if you own your own business.
- High nursing home bills in case you get sick and need custodial care (or high home health aid bills if you want to stay in your home).
- Mismanagement of property and assets in the event that you become incapacitated.
- Loss of assets due to personal bankruptcy.
- Loss of assets as a result of a lawsuit against you or a family member.
- Estate taxes.
- Irresponsible heirs who lose their inheritance to creditors, bankruptcy, or divorce.
Once you have identified the biggest risk factors, you can explore the asset protection strategies that are designed to minimize or eliminate the particular risks you are worried about. An experienced attorney can provide you with guidance on a wide variety of different legal tools that address these risks, as well as other sources of loss.
Your Options for Protection of Assets
Asset protection options vary depending upon your concerns but can include:
- Trust creation. Trust creation can resolve concerns about nursing home costs (someone 65 or older has around a 40 percent chance of eventually ending up in a nursing home, as reported by the Wall Street Journal). Trusts can help protect assets and get Medicaid to pay for care. Trusts also help protect assets from irresponsible heirs and can be useful in incapacity planning and sometimes estate tax avoidance. The protection you will get from a trust depends upon the specifics of the trust you create.
- Insurance coverage: Your plan should include making sure you have enough liability coverage and possibly purchasing an umbrella insurance policy for more protection.
- Incorporation or LLC formation: Turning your business into a separate legal entity, with its own identity, can eliminate the risks of business lawsuits as long as you follow the rules for treating your business as its own “person.”
- Power of attorney creation: This can reduce the risk of asset mismanagement in the event of incapacity.
These are just some of the possible legal tools that a Fairfield County asset protection lawyer can help you to use effectively to reduce risks and protect wealth.
Getting Help from a Fairfield County Asset Protection Lawyer
Nirenstein, Horowitz & Associates has provided assistance to many clients throughout Fairfield County and surrounding areas in Connecticut. If you have assets or are acquiring wealth and you don’t want to risk your financial security, we are the firm to call to find the right asset protection strategies.
To learn more about protecting your money and property from threats of loss, join us for a free seminar. You can also give us a call at 860-548-1000 or contact us online to speak with a member of our legal team to find out about the assistance and advice we will provide to keep your assets secure. Contact us now to get started so your wealth won’t continue to be at risk.