Asset protection strategies you may want to utilize

When a San Jose area resident starts the estate planning process one of their main goals is to protect their assets for future generations. Unfortunately, not all estate plans are effective in protecting a family’s assets. There can be many issues that result in a person’s assets to be reduced including creditors, disability, lawsuits, divorce, bankruptcy, and business failure. Having a comprehensive estate plan in place that includes asset protection strategies is critical.

Asset protection strategies

There are several asset protection strategies a person may want to use in order to protect their estate.

Examples of asset protection strategies include:

  • Use of powers of attorney to designate a trusted person to make decisions if a person becomes incapacitated.
  • Use of prenuptial agreements to protect assets from new spouses or their children.
  • Irrevocable trusts to protect assets from creditors claims and potential lawsuits.
  • Discretionary trusts that protect a person’s wealth that they wish to transfer to beneficiaries.
  • Irrevocable life insurance trusts to minimize taxation.
  • Limited liability corporations to protect personal assets from a person’s business lawsuits.

An attorney who specializes in estate planning understands their client has spent a lifetime building up their wealth. They know their client wants to protect this wealth for future generations and they can help their client understand their estate planning options that will meet their needs. There are several asset protection strategies that a person can use to protect their assets from creditors, a divorce, or litigants. In addition, plans can be made to protect assets including business interest, family home, money or other assets if a person wants to qualify for government services when they become older.