Estate planning is the process of securing your asset base. Your assets mean a lot to you. Perhaps you have worked for so many years to acquire them. Therefore, you need effective estate planning initiatives to protect your assets from creditors and lawsuits. These services are expensive but they are with the risk. For relevant help, this is how to make a strategic estate plan and protect your assets:
Approach an Experienced Estate Planning Attorney
The first sure step to securing your asset base is to seek help from an experienced attorney. The folks at www.cpllawfirm.com, explain how experienced attorneys can help you legitimize your asset ownership. This can give you confidence and utmost peace of mind. Legitimization can also keep your assets safe from lawsuits. Estate attorneys can help you use legal terms as you write your will to prevent any controversies.
Have Dedicated Retirement Accounts
Different retirement plans have unique benefits that can help you protect your assets. For instance, some Roth IRA accounts can protect you from bankruptcy under federal laws. Qualified retirement plans can also offer you avoid being spendthrift. They can help you challenge creditors’ claims in case you become bankrupt. Some companies can also offer you payback when you lose your estate. So choose suitable account holders to benefit the most.
These trusts also have anti-alienation policies to protect you during bankruptcy. Note that these qualified trusts are also eligible for a spouse or dependent claims. Depending on your state of residence, these accounts can be liable to tax claims. Seek help from your estate planning lawyer on the best type of retirement account for optimum protection of your assets.
Opt for Annuities
Most states have dedicated protection laws for annuities against potential creditors. You can protect your assets if you avoid creditor claims as they are the most common threat to asset protection. Similarly, you can choose life insurance policies for your estate plan. Many states have protection on life insurances. Check whether your state has protection for the cash value of your life insurance policy. If it does, then protect your assets with life insurance.
Remember to add extra protection for your heirs when you’re sure enough you’ll not tap your policy’s cash value. Alternatively, you can give your heirs irrevocable trust over your assets. Only do this with the help of a lawyer. Experienced lawyers know all your states’ policies and can guide you accordingly.
Choose Irrevocable Trusts
A revocable trust might not maximally protect your assets against creditors. However, an irrevocable trust can protect your assets from estate taxes and creditors. The secret of irrevocable trust is putting your assets under another person’s care. As a result, the transfer of ownership can be permanent. This means you might not get back your money or property. For better results, you can owe gift taxes as you create the trust.
Joint Ownership Can Be Helpful
When you choose joint ownership, you’ll most likely choose joint tenancy and the right of survivorship. This might not protect you fully. Joint ownership and the joint tenancy can allow creditors of either of the owners to claim the assets. Fortunately, complete tenancy protects creditors except when both owners have joint creditors. Consult your lawyer to confirm that your state offers an entire tenancy should you opt for this strategy. Also, check the assets that you state recognizes as eligible for total tenancy. This option can be effective and less costly.
Apply for a Liability Insurance
Ensuring your assets is a wise step towards protecting them. A good liability insurance plan can prompt the insurance company to pay you in case someone sues you. Depending on your policy limit, the insurance company can pay you an amount that aligns with your amount limit. Likewise, many plaintiffs feel satisfied with the insurance policy limits. You can tactfully make liability insurance the foundation of your estate plan.
Foreign trusts can help you protect your assets. Other less expensive arrangements like annuities and life insurance policies can also protect you from creditors. Joint ownership with entirety tenancies can further protect you from both creditors and taxes. Know when to opt for irrevocable trust arrangements for your heirs. Liability insurance too can secure your assets in case anyone files a lawsuit against you.
However, protecting your assets should start as you create your estate plan. To get that right, choose an experienced attorney to guide you. Your attorney knows which strategy can best protect your assets and can advise you accordingly. Remember that different states have unique policies that govern the protection of assets. Beware of the applicable laws as you choose a protection strategy.
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