Earning money may be hard but protecting the hard-earned money is an even more taxing practice. It is paramount to know all the drills about protecting wealth ethically and legally. All you earn and save in your life is for your family’s well-being. Overlooking the family asset protection strategies is likely to cause your efforts and earnings to go down the drain.
There are a number of risks with your wealth that are prone to expose your assets to creditors. These creditors can can seize your personal and business-related assets. With proper estate planning, you may be able to minimize this risk and put your assets into legally-protected vehicles to successfully safeguard your wealth and transfer them to your kids down the road.
One significant part of family asset protection lies in forming strategies to be eligible for certain government-based benefits such as Medicaid and veteran benefits.
Retitling the Assets
Transferring the ownership of your assets is one of the most common yet effective ways for preserving family assets. The property or wealth which you don`t own can be exempt from creditors and other lawsuits. Speak more about this directly with an attorney to avoid any potential fraud.
In many cases, the spouse receives the property. That’s fine up to some reasonable extent but consulting an asset protection attorney is critical. If a lawsuit has already been filed against you and you are found transferring the assets, it will likely be deemed fraudulent. In this case, there are chances are the court will give its verdict in favor of the creditors.
Insurance
In a world full of uncertainties, it’s vital to be proactive and make plans for your family’s well being through the use of insurance. Insurance offers family asset protection in a myriad of ways, and there exist several insurance options that you can opt for to help ensure the preservation of your estate.
You can cherry-pick some of the insurance types depending on the kind of protection you want.
Irrevocable Trusts
One of the most trusted choices for family asset protection lies in drafting irrevocable trusts. Upon transferring the assets to the irrevocable trust, the property can be exempt from exposure to lawsuits.
Once you create an irrevocable trust, you won’t be in a position to alter the trust instruments down the road. However, if the intention is to deceive the creditors, the court can make the liable party subject to severe penalties. Thus, consultation an asset protection attorney is critical to avoid unwanted consequences.
Key Take-Aways
If you don’t plan well or you avoid consulting a qualified asset protection attorney, you may not be preserving your hard-earned wealth as well as you could.
Our asset protection attorney can assist you with your endeavors concerning family asset protection. Visit our website Kania Elder Law and let us know about your preferences.