The main goals of an estate plan are to reduce taxes, have control over estate distribution and protect your assets for future generations. Asset protection does not hide your assets, but it helps build a wall around your wealth to motivate those who want to come after you to negotiate or walk away.
If there are threats to your wealth or changes to your family that occurred this past year, it is important to create a strong estate plan to protect your assets.
Trusts are an essential asset protection strategy if you have substantial assets. There are many kinds of trusts that you can have, so it is important to work with an attorney to find out what kinds of trusts you need to protect you. It is important to note that trusts require maintenance, so continuously work with your attorney to keep your trust up to date with state and federal law.
Protected entities are a great way to keep your personal and business assets separate. Using a corporation, limited liability company or other business entity keeps your personal account off the hook for any business matters.
Insurance policies safeguard both your wealth and your family. There are basic kinds of insurance you should have, like car insurance and homeowners insurance, to protect specific assets. Other kinds of insurance available to you include asset protection insurance and umbrella insurance. These forms of insurance help protect your assets during unexpected events.
It is vital that you prepare your estate and protect your assets before you are in trouble. There is not a one size fits all solution to protecting your assets, so work with an attorney to discover the best way to protect yourself and your family while meeting your estate planning goals.