You have worked hard to create personal wealth — growing your savings and investments, building equity in your home, and contributing to retirement accounts. All of this will help to ensure you have a comfortable retirement and something to pass along to loved ones when you are gone.
All you need is a top-rated estate planning firm in Orange County, CA, to help you protect your assets, and OC Wills & Trust Attorneys has the experience to help you get your plans in order.
Asset protection planning is an essential part of ensuring that your end-of-life wishes are carried out to your specifications. What if creditors, former spouses, or distant relatives sue your estate when you are gone? What will happen to your home and family? With the right asset protection planning, you can pass your wealth along to loved ones.
If you are worried that your assets could be vulnerable to unwanted claims, now is the time to partner with an Orange County estate planning firm to put suitable protections in place. Contact OC Wills & Trusts to schedule a complimentary consultation and start the planning process today.
What is asset protection planning?
Asset protection planning involves the use of strategies and legal devices designed to create separation between you and your named assets. When done right, this will help to protect assets from claims by creditors and others so that they are passed along to loved ones, per your wishes.
Types of Asset Protection
There are several options to consider when it comes to estate planning, but asset protection planning, specifically, involves finding ways to transfer assets to intended beneficiaries while maintaining possession and use of them during your lifetime. This could include a range of legal structures, such as trusts and family-limited partnerships.
Trusts
Among the best forms of legal protection for assets are trusts, and there are many options to explore. Two main categories are revocable and irrevocable trusts. A revocable trust offers the flexibility to make changes at any time.
An irrevocable trust, while much more difficult to change, offers a greater opportunity to protect assets against creditors and taxation, preserving assets to pass along to your chosen beneficiaries.
You might also consider a home trust, an asset protection trust, or other trusts more specific to your needs. Your lawyer at OC Wills & Trusts will advise you on the options best suited to your estate and your goals.
Family Limited Partnership
A family limited partnership (FLP) is an entity that includes you as the general partner, able to make decisions about property and assets, and family members/heirs that join as limited partners. It is a way to create joint ownership of assets among family members.
This structure allows for the granting of annual, limited, tax-free gifts among members. It also shields assets from estate tax and outside claims by creditors, former spouses, etc. FLPs are ideal for those with significant wealth and assets that they prefer to partially gift to family members during their lifetime, reducing estate tax liability later.
Advantages of Asset Protection Planning
The primary benefit of asset protection planning is that it helps to ensure that your assets are not vulnerable to claims from creditors, former spouses, distant relatives, and others. The right strategies can also reduce taxation and help to ensure that assets are passed along to your spouse, children, or other intended beneficiaries.
Who can benefit from asset protection planning?
It is a common misconception that estate planning is only for people with significant wealth. Even if your assets are modest, you may own a home or other valuable property that is worth protecting. If you have more significant assets, it is especially important to put protections in place, as your estate could be a target for claims.
Asset protection planning is also a wise choice for those with high credit card debt, anyone who is underwater on a mortgage, or those in a profession with significant liability (such as doctors or lawyers). Consulting with an experienced attorney can help you understand the value of asset protection planning where your estate is concerned.
How We Can Help
Estate planning is not a one-size-fits-all undertaking. A lawyer will assess your estate, factor in your future goals, and help you make informed decisions about the best ways to protect and preserve your wealth. With the right asset protection planning strategies, you can direct how assets are used or gifted during your lifetime and when you pass away.
Are you concerned about what will happen to your assets when you are gone? The caring and qualified team at OC Wills & Trusts provides the efficient, accessible, and responsive estate planning services Orange County, CA, residents expect and deserve. Contact us today to schedule your complimentary consultation and create a personalized asset protection plan.
