Wealth Protection Legacy Plan

There are several strategies that can be used in asset protection planning, and the right strategy will depend on your specific circumstances and goals. Some common strategies include:

1. Use legal structures to protect your assets: One of the most effective ways to protect your assets is to use legal structures that are designed to shield your assets from potential creditors and lawsuits. Some common structures that are used for asset protection include trusts, limited liability companies (LLCs), Family Limited Partnerships (FLPs), and corporations.

For example, a trust is a legal entity that holds assets for the benefit of a third party (the beneficiary). There are several different types of trusts, including revocable trusts, irrevocable trusts, and charitable trusts. Trusts can be an effective way to protect your assets because they allow you to separate ownership and control of your assets. This means that you can grow and retain control over your assets during your lifetime, but the assets will be protected from creditors and lawsuits after your passing. LLCs, FLPs, and corporations are also commonly used for asset protection. These structures allow you to separate your personal assets from your business assets, which can help protect your personal assets from potential creditors and lawsuits.

2. Diversify your assets: Diversifying your assets can help reduce risk and protect your wealth. This could include investing in a variety of asset classes, such as stocks, bonds, real estate, and alternative investments. By diversifying your portfolio, you can help reduce the impact of any one particular investment on your overall financial health.
3. Use insurance: Insurance can be an effective tool for asset protection, particularly for those with significant assets. Different types of insurance, such as liability insurance and umbrella insurance, can help protect your assets from potential creditors and lawsuits while life insurance can ensure your loved ones receive a benefit from your hard work after your lifetime.
4. Consider international asset protection strategies: For those with very high net worth, international asset protection strategies may be worth considering. These strategies involve transferring assets to offshore trusts or other legal entities in countries with strong asset protection laws. However, it’s important to note that international asset protection strategies can be complex and may have tax implications, so it’s important to work with the experienced attorneys of Hunter Sargent, PLLC to determine if this is the right strategy for you.
5. Use financial planning strategies: Financial planning strategies, such as retirement planning and estate planning, can also be used to protect your assets. For example, retirement accounts, such as 401(k)s and IRAs, are generally protected from creditors and lawsuits. Estate planning can also help protect your assets by allowing you to specify how you want your assets to be distributed after your passing.
6. Review and update your asset protection plan regularly: It’s important to review and update your asset protection plan regularly to ensure that it reflects your current circumstances and goals. Life changes, such as the acquisition of significant assets, can impact your asset protection strategy, so it’s important to stay up-to-date.