ASSET PROTECTION PLANNING 101
Building up your estate is something that is done over the course of a lifetime. Whether you are just starting your estate planning and want to ensure it is protected, or you are retired and need to minimize the risk of losing assets, this post can help. An important, but often overlooked, part of estate planning is asset protection planning.
Asset protection planning consists of a variety of steps you can take to help ensure the money and other things you have saved is safe from potential threats. This blog provides an outline of some of the most common risks, and how they can be minimized. For a comprehensive look at asset protection planning based on your specific situation, make sure to give us a call at 212-561-4299 to schedule a consultation with an attorney.
POTENTIAL THREATS TO YOUR ESTATE
Most people don’t give too much thought to potential threats to their assets, and even when they do think about it, they may not be aware of what types of risks are out there. Unfortunately, if you don’t start asset protection planning ahead of time, it will be too late should something happen. The following are some of the most common threats to the wealth that you have accumulated:
Lawsuits
Lawsuits are one of the biggest threats to your estate. If you aren’t prepared, you could be held entirely responsible for a lawsuit against you or your business. This can quickly decimate even a large estate.
Long Term Care Planning
If you or your spouse requires nursing home or other long term care it can cost thousands of dollars each month. Depending on the steps you take ahead of time, this could all have to be paid for out of your pocket.
Taxes
While everyone is going to have to pay taxes, you don’t want to pay in more than you are required to. Good asset protection planning will help to ensure your taxes are handled correctly.
Market Changes
If you have a significant portion of your estate in the stock market, there are risks associated with market changes. While the market is a great place to grow wealth, you need to make sure to manage the risks correctly.
Creditors
It is important to pay your debts, but creditors can come after money that they aren’t entitled to. Good asset protection planning will help to keep yourself and your loved ones protected.
BASIC ASSET PROTECTION STEPS
Fortunately, there quite a few things that can be done to help protect your estate from the threats listed above, and many others. For example, creating legal trusts where assets can be kept will erect a barrier between yourself and your assets that can keep them safe from lawsuits and other threats. Medicaid planning is another option in many cases, which will help to protect yourself from the hazards of long-term care costs. Talking with an attorney who can look at your situation and craft a custom asset protection plan is the best way to ensure you have what you need today, tomorrow, and long into the future.
