Asset protection is an essential part of a comprehensive estate plan and should be a part of the discussion between you and your estate planning attorney. It is a feature of estate planning intended to protect your assets from any possible legal interference or judgments or creditor claims.
You may need to protect your wealth from such sources and instead keep it available to benefit your family, friends, and other beneficiaries. Asset protection can help you to manage risk, maintain control of your assets, and provide you peace of mind that your hard work and wealth will be preserved. It can also help to ensure that those you care about are provided for in the future.
What is Asset Protection?
Asset protection is the process of making sure that your assets are protected from creditors. It involves engaging in legal strategies, financial planning, and other measures to ensure that an individual’s assets are secure. This can include methods such as trusts including offshore asset protection trusts, homestead exemptions, family limited partnerships, and life insurance. Whether due to lawsuits, creditors, and taxes, proactive asset protection is a comprehensive method of preserving wealth and making sure that your assets aren’t dramatically affected by these situations.
What is an Asset Protection Trust?
An asset protection trust is a unique type of irrevocable trust that can insulate your assets from creditor actions, including lawsuits. There are domestic and offshore asset protection trusts and an offshore asset protection trust will grant you legal jurisdiction outside of the U.S. An offshore asset protection trust is usually the better trust to choose and is perfectly legal.
If thinking about setting up an asset protection trust, make sure to discuss your assets, the process for transferring them into the trust, and reasons you need to protect assets from creditors with your estate planning attorney. Depending on the jurisdiction in which it was formed, an asset protection trust may also provide additional tax benefits, such as avoiding or reducing estate taxes.
You should consult with an experienced asset protection attorney who can help you decide if an asset protection trust will work for you.
Who Should Have an Asset Protection Plan?
Anyone with assets might consider having an asset protection plan in place. This includes individuals who are self-employed, own a business, individuals with significant investments or real estate holdings, or those expecting a large inheritance.
Some high-risk individuals who may need asset protection include physicians, surgeons, business owners, real estate investors or developers, attorneys, CPAs, or members of a profession that is subject to an unusually high number of lawsuits.
Asset protection plans can help reduce the risk of depletion of assets due to creditor actions and ensure that assets remain available for future generations. In addition, those with high net worth should consider an asset protection plan to safeguard their wealth and preserve it for the future. Anyone with significant assets should consider having an asset protection plan in place to protect their financial interests in case of any unforeseen circumstances.
Contact a Chicago Asset Protection Attorney Today
With the help of Chicago IL asset protection attorney James C. Provenza, you can receive industry-leading legal counsel and advice to make sure that the necessary asset protection tools are in place. To speak with James C. Provenza & Associates about your wealth preservation strategies, call our law firm today at (847) 729-3939.