Estate planning is an important part of protecting yourself for your future. One of the most important parts of estate planning is known as asset protection planning. This is where you take action to minimize the risk involved with the assets you own. While asset protection planning is important throughout the estate planning process, it becomes especially critical from the point of retirement on since there are additional limitations on recovering from loss. Given the large number of retirees in Miami and throughout Florida, we have a strong emphasis on this topic at our firm. Read on to learn more about asset protection planning.
Knowing the Threats
One of the first points of asset protection planning is understanding the various threats that exist. These threats apply to virtually all people, but the amount of risk in each area will vary based on many factors, which is why customized asset protection planning is so important. The following are some of the most serious threats to your assets that you need to be aware of:
- Long Term Care – If you or your spouse ever need nursing home or other long-term care, it can cost tens of thousands of dollars per year.
- Taxes – Taxes are one of the largest expenses people have, and that does not stop at retirement. Finding the best way to minimize your tax burden (without violating any laws) is critical for protecting your estate.
- Lawsuits – As the value of your estate increases, you will be at greater risk of being targeted with a lawsuit.
- Divorce – Divorce among the retired is growing at a rapid pace, and it can be devastating on your overall estate plan.
Strategies in Asset Protection Planning
There are many different strategies that can be followed to help protect your assets. Finding the right options based on your situation in life can be complicated, but is well worth the effort. Using legal trusts, for example, you can help to protect your assets from certain tax liabilities and probate court. An LLC can help to limit your exposure to lawsuits. A good attorney will analyze your estate and recommend the right balance of protection to get the results you need.
Put Our Experience to Work for You
As with all areas of estate planning, you will need a customized asset protection in place to get the best results. We have years of experience helping people from Miami and the surrounding area to accomplish their goals, and we would be honored to help you too. Please contact us to schedule a consultation today.