What sort of assets are protected in an estate plan?

Thus far we have established that such a plan is a legal device. It ensures that business and personal assets stay in the possession of the asset-holder, ultimately diminishing creditors’ access to the asset-holder's property while also making sure that the asset-holder does not violate the law.

There are many tools that may be utilized within an estate plan. Asset protection, for example, makes sure that your assets transfer safely under the terms of your estate plan. 

Estate planning and asset protection often go hand in hand since an asset protection plan makes use of trusts and businesses, while the estate plan may incorporate an asset protection plan within it. For instance, you may establish an irrevocable living trust for you, your family, and other beneficiaries. A limited liability company or LLP may also be established to protect your assets from creditors.

Creating a limited liability company (LLC) to protect assets is a sound business strategy that is beneficial for most clients. An LLC is a corporate entity that legally separates the owners, referred to as “members,” helping to shield assets from creditors. While the LLC's members control and benefit from it, the titles to the assets remain in the company. It is also important to note that LLCs may own, buy and sell property as well. 

Like an LLC, LLPs remain wholly separate from their creators. An LLP allows individuals and their spouses to own a small portion of a partnership and its assets. Through the LLP they may control all of the partnership and its assets, even though they don't own all of it.

What else can be done for my assets, you ask. Well, within your plan you may also employ business entities, life insurances, qualified retirement accounts, annuities, and homesteads. Each of these strategies need to be discussed and determined based on an individual's particular assets and goals which is why we encourage you to contact us for an exploratory session.