I speak with many families everyday who are contacting our office for the very first time and who say, “Dan, I need a Will,” or “Dan, I need a trust.” As I always do with these conversations, I will respond, “instead of us focusing on what you need, let’s focus on why you think you need a will or a trust.”
When we have this conversation, we will focus on family, loved ones, children, and a desire to make sure they are protected and have as easy time as possible after death. However, what’s the point in all this estate planning if there are no assets to pass along after death?
I am routinely given the task of probating what is called an insolvent estate. This is where the debts exceed the assets. This is usually not a pleasant time for the family. Especially, when they learn that this will not be easy process, and that their loved one left nothing behind.
As I tell many people I meet with, “imagine your loved ones finding out that your affairs were not set up correctly and realizing that you could have done something about it but didn’t.”
The purpose of this article is to explain the importance of asset protection when it comes to your estate and legacy planning.
Everyone needs to plan for the unexpected. This includes the prospect that you may be involved in a lawsuit during your lifetime, and you need to be prepared so that you are not completely wiped out by the lawsuit.
As I tell our clients, “liability insurance is merely icing on the cake, it is not the entire cake.” When it comes to planning your estate and legacy, you may want to consider an asset protection strategy. This could include:
- Medicaid Asset Protection Trust
- Qualified Income Trust
- Limited Liability Company
- Family Limited Partnership
- Domestic Asset Protection Trust
When you meet with your estate planning attorney, make sure you devote a period of your time and counsel on the subject of asset protection.
If you have questions regarding estate and legacy planning and want to establish the perfect estate plan for you and your family, please CLICK HERE to schedule your Estate and Legacy Planning Legal Strategy Session!