As part of your estate plan, if you are a business owner, business professional, and property owner, you need to safeguard your assets from creditors and third-party legal claims, so your family isn’t affected by these claims in the event of your death.
Failing to protect your personal or business assets with an Asset Protection Plan exposes them to costly lawsuits and judgments, that upon your death, your loved ones will have to defend and pay for.
By having an estate plan to transfer and shelter assets and avoid probate, you and your loved ones are protected in life and death and will ultimately reap the benefits of your hard work.
How to Protect Your Assets
Having an Asset Protection Plan for personal or professional assets is not just for the super-wealthy. It’s good practice for everyone. The use of an irrevocable trust shields your assets and beneficiaries from legal claims and allows your loved ones the chance to grieve without the added emotional, physical, and financial suffering.
There are several types of plans available:
- Asset Protection Trust
- An irrevocable asset protection trust is designed to protect your money and/or property from creditors by transferring ownership to a trustee who manages it for you. The property then becomes “owned” by someone else, which blocks creditors from the ability to seize those assets.
- Bypass Trust
- A bypass trust helps spouses avoid unnecessary estate tax liability if one should pass away before the other. Each spouse leaves property up to the maximum allowed to a bypass trust, then passes on the rest of what they own to the other. The property left to the trust is covered by the estate tax exclusion and is not subject to estate tax in the surviving spouse’s estate.
- Specialized Trusts
- There are other types of specialized trusts that an estate planning and business attorney from Bolinger Law Firm can help you set up based on your specific needs.
Guard Your Life’s Work
Don’t be caught off-guard – it is vital to protect your personal and business assets by taking steps now to limit potential liability down the road. Asset protection can be the difference between financial safety and financial ruin for those left behind.
Call (636) 386-8322 or contact us today to speak with an experienced St. Louis Estate Planning and Asset Protection Attorney at Bolinger Law Firm. Our door is always open and our consultations are free.