Estate planning is the process by which a person can plan for the management of their affairs and the transfer of their assets in anticipation of death or if they should become incapacitated. With estate planning, you want to make sure that your estate passes to the next generation with the least amount of taxes and administrative inconvenience.
Asset protection planning protects an individual’s assets and gifts to beneficiaries from potential third party claims, including an unforeseen or unexpected lawsuit. Unfortunately, litigation is a common occurrence in the U.S. today, with over 50 million lawsuits filed in 2018. Asset protection provides you with a way to protect your family and your legacy, as well as your assets.
Comprehensive estate planning combines the benefits of estate planning with asset protection planning. With comprehensive estate planning, you’re getting a high-quality plan that ensures your assets will be distributed to your beneficiaries as directed by your trust(s) without the need for the expense and time involved with probate.
Added to this plan will be layers of protection and advanced tax planning structures, such as foreign asset protection trusts, offering lawsuit protection as well as tax reduction.
Is Your Real Estate Protected?
If the value of your real estate holdings is significant, they can be used to cover any damages awarded in an unexpected lawsuit. Therefore, you need to consider asset protection strategies that relate to real estate holdings to reduce your financial vulnerability.
Asset protection planning for real estate incorporates insurance and how that real estate is titled. Any real estate that you own should be adequately insured for type and use. Consulting with an insurance professional concerning coverage, costs, and possible areas of exposure as well as limits for business liability insurance and umbrella business liability insurance is critical.
Investment real estate is typically held in a limited partnership, corporation, or limited liability company in order to provide you with some protection from lawsuits. Limited liability companies or LLC’s have become popular for many types of real estate holdings because only the assets of the LLC can be used in order to satisfy a claim while other assets are protected.
These and other strategies can be incorporated into a real estate asset protection plan, but investors should consult a real estate asset protection attorney for advice on how strategies can be tailored to fit their individual situation and needs.
If you are looking for the best asset protection attorney to design a comprehensive estate plan, the Jeffrey M. Verdon Law Group has over 30 years of experience when it comes to providing their clients with comprehensive estate plans that offer superior protection to ensure their financial security as well as that of their heirs.
Passing on Your Estate? Make Sure Your Heirs get the Maximum
Having a comprehensive estate plan ensures that you’ll be able to shift your wealth to the next generations with the least amount of estate taxes, legal costs, and administrative overhead.
Contact our firm today to discuss the benefits of comprehensive estate planning.