Asset protection planning is actually risk planning against the costly curves life will throw at you.
Make a personal commitment to yourself and your family that you will do everything possible to protect your family and your assets.
Lawsuits can quickly tie up your assets. And if the other party wins the lawsuit, the judgment against you could quickly deplete your funds. If you drive frequently, own rental property, or operate a business, buy an umbrella liability policy that protects your assets from lawsuits.
Many people who never expect Alzheimer’s disease to strike have had to face its problems with no advance planning. So plan for Alzheimer’s disease now, while you have time. This includes the need to address issues of backup decision-makers, assisted living, and nursing home care. If your children can care for you later in life, that’s fine. If they cannot, your advance planning will pay big dividends. Plan for the worst — and hope for the best. Then, in either case, you will have all your bases covered.
Examples of Costly Problem Areas
> Disability: This year you are six times more likely to become disabled than to die. Even so, many asset protection and estate plans have no provisions that deal with disability.
> Lawsuits: In the U.S., one lawsuit is filed every 30 seconds — over 90 million each year. Many asset protection and estate plans do not protect the beneficiaries’ interest from creditors and divorce.
> Powers of Attorney: Most powers of attorney are outdated when presented. And at the time they are needed, many powers of attorney are nowhere to be found.
> Bankruptcy: More young people are filing for bankruptcy than are graduating from college. Yet most asset protection and estate plans do not protect a young adult’s inheritance from bankruptcy and creditors.
> Legacy: Most estates don’t last long enough to get to the grandchildren. Yet, estates can pass from children to grandchildren free from estate taxes. Most trusts do not contain the language for this to occur.
> Unfunded Trusts: Most asset protection and estate plans are established with sophisticated provisions to avoid taxes and probate. Still, many living trusts are of no value because they were never funded.
from Protecting You And Your Family http://ift.tt/29IOIOU
from DeWitt Law Firm, PLLC
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