In today’s litigious society, it is critically important to protect your assets. You work hard for what you have and to provide for your family – failing to adequately protect your assets subjects them to claims arising from creditors, potential litigation, judgments, and a host of legal issues should you pass away without an estate plan in place.
As part of your estate plan, if you are a business owner, business professional, and property owner, you need to protect and safeguard your assets from creditors, third-party, or legal claims so your family isn't affected by their claims in the event of your death.
The use of an irrevocable trust shields your assets and beneficiaries from such claims. Since you work hard to provide for your loved ones, it is important to make sure that the assets that you pass to them at the time of your death are not subject to claims and lengthy, costly litigation against them.
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 having the ability to have those assets seized.
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.
As the property increases in value, it can safely grow above the exclusion amount without incurring potential estate tax at the death of the surviving spouse. When the surviving spouse dies, the contents of the trust go to the named beneficiaries, who can then get it without facing an additional round of estate taxes.
3. Specialized Trusts
There are other types of customized trusts that an estate planning and business attorney from Bolinger Law Firm can help you set up based on your specific needs. It is vital to protect your personal and business assets by taking steps now to limit potential liability down the road and protect your loved ones and the future you have worked so hard to secure.
It has never been as critical to protect your assets as it is today. Our experience and thorough assessment of your personal and business situation and our desire to listen intently to your wishes will culminate in asset protection that you can feel good about.
Bolinger Law Firm also handles of types of estate planning and business law so we can be your trusted legal partner as you walk through life and take care of those left behind if you should become incapacitated or pass away.