Are your assets protected? Every family should answer this question with a confident yes. Unfortunately, many people do not know where to start when it comes to wealth management and asset protection.
How to protect and preserve your wealth
Wealth management is a vital part of estate planning. You can preserve your wealth in a variety of ways with a thorough estate plan that transfers your assets to a trust, limited liability entity or other an insurance policy in some cases.
Strategies to consider with your attorney when updating your estate plan include:
- Set up a trust: Consider transferring your assets to an asset protection trust or irrevocable trust. An asset protection trust will protect your wealth from creditors and still allow the trustee to distribute funds. An irrevocable trust will protect your assets from being seized by creditors.
- Transfer ownership of assets: Consider retitling your assets to protect your wealth in the event of a legal dispute or to make transfer of assets to a spouse easier if one spouse passes away.
- Create a limited liability entity: Consider separating your assets into personal and business assets. This will protect your personal assets from potential lawsuits against your business and help you maintain your wealth management goals.
- Update life insurance: Your life insurance plan can help minimize estate and gift taxes when transferring assets to heirs.
Your estate plan is there to protect you and your family. Do not forget about including wealth management and asset protection strategies in your estate plan. These tips can help you start thinking about how to update and revise your estate plan to provide the most protection. An asset protection attorney can help you understand the different ways to protect your family’s wealth.