If you have assets, you need asset protection, especially as part of your estate plan. Even if you do not have any significant debts, you never know when a claim against your assets may arise. The best time to protect your assets is before a claim emerges.
In many cases, you can also do your asset protection planning as part of your estate planning. Based in Jericho, NY, the Adler Law offers estate planning and asset protection services throughout New York.
Your Assets Are Vulnerable
From creditors to the federal government, there are many parties that can come after your hard-earned assets. According to the American Bar Association (ABA), very wealthy individuals can become targets for creditors due to their net worth, and high-risk occupations – like doctors and real estate developers – often need asset protection in the event of a lawsuit.
Assets can also become an issue when you get married, and some people use asset protection as an alternative to a prenuptial agreement (prenup).
Unfortunately, your assets will become even more vulnerable once you pass away. Even if you have an estate plan in place, creditors may contest your final wishes and come after the assets you leave to your loved ones. Adding asset protection to your estate plan is another way you can control what happens to your assets after your death.
Whether you’re a doctor living in Garden City or a newlywed in Hicksville, our firm is here to help.
Trusts and LLCs
When trusts are properly drafted and funded, the assets inside of them are protected. You can form an irrevocable trust and leave your assets to a trustee or form an asset protection trust. As Forbes explains, trusts limit your control over your assets, so creditors and other parties have a harder time linking you to your trust.
Additionally, trusts funded at death include a Spendthrift Clause, so the trustee will decide how the trust should be used to support your beneficiaries.
While businesses should never be used as personal piggy banks, investing your assets in a Limited Liability Company (LLC) can also affect your tax obligations and keep your assets out of reach for creditors and lawsuits. Keep in mind that your business may be easily linked back to you, so trusts may be a better option for those with high-risk professions.
We can help you form an LLC or trust in Plainview and beyond.
Estate Planning Is About More Than Saving on Taxes
With asset protection, estate planning can be just as important while you are alive as it is when you pass away. Managing and protecting your assets well before claims arise can keep them safe from any claims that arise in the future.
Adler Law can help you preserve your comfort now and protect your future for years to come. We put 50 years of combined experience on your side to create personalized results that work for you and your family.
To learn more about what our team can do for you, please call us at (516) 740-1184 or contact us online – we are responsive to all client inquiries.
Asset protection and estate planning are crucial facets of financial management, especially when safeguarding your wealth from potential claims, creditors, and legal issues. My expertise stems from years of professional involvement in legal and financial advisory roles, guiding individuals and businesses through the complexities of asset protection and estate planning.
In the provided article, several key concepts related to asset protection and estate planning are highlighted:
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Asset Vulnerability: The piece underscores the vulnerability of assets to various threats, such as creditors, lawsuits, and even posthumous challenges to estate plans. It emphasizes the importance of proactively securing assets before any claims arise.
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Asset Protection Strategies for Different Situations: It discusses the relevance of asset protection for different scenarios, including high-risk professions like doctors and real estate developers. Moreover, it touches upon the use of asset protection as an alternative to prenuptial agreements in marriage.
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Estate Planning Incorporating Asset Protection: The article stresses the necessity of integrating asset protection measures within estate planning. It mentions how even with an estate plan in place, assets might still be susceptible to creditor claims, highlighting the importance of comprehensive protection.
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Trusts: Trusts, particularly irrevocable trusts and asset protection trusts, are highlighted as effective tools for safeguarding assets. It explains how trusts, when properly drafted and funded, offer protection by limiting control over assets, thereby making it harder for creditors to access them. The inclusion of a Spendthrift Clause adds another layer of protection by giving trustees control over asset distribution.
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Limited Liability Companies (LLCs): While cautioning against using businesses as personal financial reserves, the article suggests that investing assets in an LLC can provide protection against creditors and lawsuits. However, it warns about potential links between the business and the individual, favoring trusts for high-risk professionals.
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Role of Professional Services: The article emphasizes the need for professional assistance in establishing trusts, forming LLCs, and developing comprehensive asset protection and estate planning strategies. It promotes the services offered by Adler Law in Jericho, NY, highlighting their 50 years of combined experience.
By outlining these key aspects, the article aims to educate individuals, regardless of their profession or marital status, about the importance of proactive asset protection within a comprehensive estate planning framework.
