Making smart use of asset protection strategies is important at all phases of your wealth-building process. When you work hard, you deserve to benefit from the fruits of your labor and to enjoy financial security. You cannot do this if your wealth is lost due to things like creditor claims, lawsuits, high nursing home bills, [ ] The post 5 Key Asset Protection Strategies appeared first on Nirenstein, Horowitz & Associates P.C..
An asset protection trust is a generic term used to describe different kinds of trusts that provide different protections for your personal wealth. An asset protection trust can keep your assets safe in lots of different ways, depending upon the kind of trust that you create. The type of trust you create is going to [ ] The post How Does an Asset Protection Trust Work? appeared first on Nirenstein, Horowitz & Associates P.C..
A trust is a type of legal device that is used in the field of estate planning, and there are multiple different types of trusts. Contrary to a widely held belief, every trust is not an asset protection trust. One major distinction between trusts is the power of revocation, and this has everything to do with asset protection capabilities. There are trusts that can be revoked or dissolved, and there are also irrevocable trusts. Let s examine the details. Revocable Living Trusts Revocable living trusts are very popular, and you could potentially benefit from the creation of a revocable living trust even if you are not extraordinarily wealthy. As the name would indicate, you can revoke this type of trust, so you could change your mind, dissolve the trust, and walk away with the assets back in your pocket. You will probably never want to revoke the trust, because you would be creating it as the centerpiece of your estate plan, but you do not have to worry about losing control while the tr
Asset protection is very important for many people, and it comes in different forms. It is said that we live in a litigious society, and it is possible to position your assets in a safe manner. We will look at the spectrum in this blog post. Asset Protection for Business Owners and Professionals If you own a business or professional practice, you may want to take steps to separate your personal property from the actions of your business. For example, let s say that you are a landlord. Renters and people who visit commercial spaces that you are renting out could potentially get injured on property that you own. Under these circumstances, legal actions may be initiated. To make sure that your own personal assets are protected, you could use an asset protection structure of some type. One possibility is the family limited partnership. As the name would suggest, the people in the partnership are all family members. If you establish the family limited partnership, you would be the general
When you think about asset protection trusts, the subject of lawsuits may come to mind. There are in fact trusts that can be used to protect assets from legal judgments, but in this blog post, we are going to look at a different form of asset protection. Preserving Your Resources Anyone can be the subject of a lawsuit, but there are some people who are more vulnerable than others. When you evaluate your life circumstances and your financial position, legal actions may not concern you very much. Even if this is the case, asset protection trusts should be on your radar. This is because of the fact that long-term care costs can potentially consume everything that you consider to be your legacy. Why should you be concerned about long-term care costs when you are going to qualify for Medicare when you reach the age of eligibility? It is true that most senior citizens will qualify for Medicare coverage at the age of 65, but this program does not pay for long-term care. Many people question
The concept of asset protection is usually applied to potential lawsuits, but there is another type of asset protection that everyone should be concerned about. It can be hard to envision a time when you will not be able to take care of all of your own day-to-day needs, but the reality is that most senior citizens will eventually need living assistance. The figure is 70 percent according to the United States Department of Health and Human Services. Most seniors qualify for Medicare when they reach the age of 65, but Medicare does not pay for long-term care. There are those who can rely on family members and friends for assistance, but a significant percentage of elders ultimately reside in assisted living communities and nursing homes. These facilities are quite expensive, and long-term care costs are especially high here in Connecticut, where we practice law. It can easily cost you well in excess of $100,000 per year to reside in a nursing home, and people often require multiple year
Endeavoring to earn a good living is job one when you are a self-supporting adult who is trying to build financial security. At the same time, in the litigious society that we live in, you have to be concerned about protecting what you have earned, because lawsuits are not uncommon. Asset protection is something that you should think about, regardless of what you do for a living. However, there are people who are engaged in certain lines of work who are more vulnerable to legal actions than others. For example, consider the plight of the real estate investor. If you own property that is rented out, a steady stream of people will occupy the property. This is true for residential rentals, but commercial rentals can have a great deal of foot traffic on a daily basis. It would not be shocking if someone was to get injured on rental property if you are the owner of a shopping center or an apartment complex. Doctors are also in harm s way when it comes to legal actions. Clearly, people who