Our Asset Protection Lawyers Can Help With Estate Planning
Virtually everyone is excited about 2020 finally being over. As we head away from that disastrous year into 2021, it is important to ensure that our finances and legal affairs are in order. Last year showed us that life can throw curveballs without any warning. Many people accrued tens of thousands of dollars in debt due to illness, job loss, or both. Additionally, business and property owners might face lawsuits in the months to come.
Below, our asset protection lawyers included some tips that can help protect your most important assets from creditors.
Form an Irrevocable Trust
Depending on the circumstances, a trust can be one of the most effective tools for protecting important assets. You may be able to protect assets from creditors with an asset protection trust. This is an irrevocable trust that can make it much easier to handle creditors. Should a creditor file a lawsuit against you, the person managing the trust, your assets would be protected. You do not technically own the assets included in the irrevocable trust although the trust assets can still be in your control.
Obtain Liability Insurance
You should use insurance to protect your estate from lawsuits. If you have the minimum amount of required insurance, such as on your vehicle, then you should consider upgrading your policy. Insurance policies can help soften the blow from traumatic life events, like a car accident or slip and fall injury on your property. If you have wealth, then consider increasing your policy limits and carry an umbrella policy.
Move Rental Properties Into an LLC
Are you a landlord or business owner? If you rent out property to other people, then moving those properties into an LLC (limited liability company) can prevent your personal assets from being included in a judgment. Business owners may benefit by moving certain assets into an LLC. With an LLC, you may limit your exposure to lawsuits, such as a slip and fall injury on your property.
Meet With an Estate Planning Attorney
Serious injury or illness could occur at any time. Without notice, you could suffer a fatal injury or incapacitation from an illness. If you do not have an estate plan in place, then your assets may pass through probate court after your death. Should you suffer incapacitation, someone may make decisions about your medical care that you disagree with. The future of your assets may be uncertain without an estate plan.
Consider working with an estate planning attorney to set up a will, trust and durable power of attorney. An effective estate plan can help you and your family avoid some of the pitfalls discussed above.
When 2020 began last year, most of us probably thought “it’s just going to be another uneventful year.” What followed may have been among the most difficult years many of us experienced, with job loss and illness touching millions of lives. Simply put, disaster can strike with little to no warning.
Have a plan in place to protect your assets before disaster strikes. Illness, job loss, medical debt, divorce and lawsuits can put your most cherished assets at risk without a plan in place. Schedule a consultation with an asset protection attorney at Skipton Law, LLC by dialing (720) 770-3880 or by using the contact form on our site.