There are various different objectives that you may have when you are planning your estate. The exact way that you ultimately proceed is going to depend on the specific nature of your circumstances.
With this in mind, some people are concerned about asset protection. You want to be sure that the assets that you have accumulated remain in your possession for your own well-being. Since we are talking about estate planning, it is also important to protect inheritances that you intend to leave to your loved ones.
Why Asset Protection?
Some people are totally familiar with the term “asset protection” and they don’t need an explanation. Others may wonder why you would have to protect assets. What can potentially happen to them?
Asset protection is a process that is implemented to keep assets out of the reach of creditors, claimants, and former spouses to be.
There are individuals who are in lines of work that are inherently vulnerable to litigious types. This would include real estate investors because they often have tenants. Tenants can initiate lawsuits if they become injured or have some other problem that they want to attribute to the property that they are renting.
Another line of work that can invite lawsuits is that of the physician. Many physicians take risks on a daily basis from a legal perspective as they perform their duties. Malpractice suits can be initiated, and under some circumstances personal wealth can be targeted.
Asset Protection Strategies
When it comes to estate planning there are various different steps that you can take to protect your assets from creditors and litigants.
One asset protection structure that is routinely utilized in the field of estate planning is the limited liability company. You have a general partner, and you have limited partners.
Assets that have been placed into the partnership cannot be attached if there are personal actions against any of the partners. Limited liability companies are also used, and there is a similar dynamic in place. People who are involved in the company cannot be held personally liable for the actions of the company.
From a personal perspective there are also certain types of trusts that can be used to protect assets. Irrevocable trusts are sometimes utilized because you surrender incidents of ownership when you convey assets into one of these trusts.
Asset Protection Consultation
If you would like to learn more about asset protection and the various steps that you can take to keep your assets out of harm’s way, we would like to invite you to contact us to schedule a free consultation.
To request a consultation you can visit our contact page and follow the simple directions. If you would prefer to contact us by phone, we can be reached at 860-548-1000.
Latest posts by Barry D. Horowitz, Estate Planning Attorney (see all)
- How to Incorporate a Domestic Asset Protection Trust into Your Estate Plan - January 16, 2020
- How Long Does It Take to Probate an Estate in Connecticut? - January 14, 2020
- Is Cryptocurrency an Asset? - January 9, 2020