When starting to think about estate planning, you will likely come to realize the importance of wealth protection. When wealth is not protected strategically, it can become subject to high tax rates at the end of your lifetime. Additionally, assets can be vulnerable to losses if poor financial decisions are made regarding other assets.
It’s important that you have a good idea of the options available to you when it comes to wealth protection. By understanding the pros and cons of common strategies, you will be able to make a decision that works best for you.
Asset protection trusts
Asset protection trusts, as the name suggests, are great options for those who want to protect their wealth from credits. These can be held offshore or domestically in certain circumstances. Asset protection trusts are irrevocable, and therefore, they are reliable ways of avoiding compromising your assets.
Asset ownership
Another way to help you guard assets against creditors is to retitle your assets. You may, for example, want to title your assets as tenants-by-the-entirety with your spouse. Doing this will help you to avoid creditor action to seize your assets, even at the end of your life.
Irrevocable trusts
Many people decide to include irrevocable trusts as part of their estate plan. This helps ensure that assets avoid the probate process at the end of your lifetime, as the assets will no longer be considered to be your personal property.
If you are approaching your estate plan with asset protection in mind, you will be pleased to know that there are many options available to you. An attorney can help you be better equipped to make the best decisions for your situation.
