One reason you may choose to develop an estate plan is to bolster the protection of your assets. Whether you have a small or large amount of assets, asset protection should be a critical part of every estate plan. Distributing your assets to your named loved ones is important to do early in case you are ever incapacitated or pass away. Making the right preparations ahead of time can help you avoid unnecessary legal expenses and save your family from dealing with a complex legal situation. An experienced estate planning lawyer can explain to you about your options for keeping your assets safe and secure.
What are the benefits of an estate plan?
An estate plan is an excellent way to protect your assets from being accessed or handled by the government or individuals you don’t want obtaining your assets. Several benefits that an estate plan offers in regards to your assets include:
- Reducing or avoiding taxes
- Protection from lawsuits
- Protection of assets not covered by insurance
Working with an estate planning lawyer, like one from Klenk Law, can help you identify which of your assets are protected and which aren’t. They can suggest your list of assets and categorize them properly so you reduce the risk of losing them.
How do you protect assets from creditors?
One method of asset protection that is useful to keep your assets out of reach from creditors is an irrevocable trust. An irrevocable trust is a form of trust where only the beneficiary can give permission to alter its established terms and conditions. When you place your assets in this trust, you give up your authority to control those assets. This type of trust is a popular option among individuals in professions where they are vulnerable to lawsuits, such as law or healthcare. If you have questions about setting up an irrevocable trust, a lawyer can assist you.
How do you protect assets from divorce?
To protect your assets from divorce, a lawyer may advise you to create a prenuptial agreement or cohabitation agreement. Trusts such as irrevocable trust or a revocable living trust are also effective in keeping your assets safe.
The process of forming a robust, comprehensive asset protection plan can be simplified by hiring a competent and respected lawyer who can review your finances and suggest strategies that match your estate planning needs. Learn more about the different methods that can be used in asset protection by consulting with a lawyer.