Estate planning is not only about distributing your assets after you pass away; it is also an essential tool that protects you now, during your lifetime, and beyond.
Depending on your specific circumstances, you can implement many strategies. Remember to speak with your attorney to ensure you receive personalized information.
Using trusts
Perhaps one of the most effective ways of protecting your assets is by placing them in a trust. If the trust is revocable, you (the grantor) can revoke or dissolve it. If the trust is irrevocable, which has its benefits, such as protection from creditors, once you transfer your assets into the irrevocable trust, you cannot change it.
Joint ownership
For married couples, holding property as tenants provides liability protection. It also means that if one spouse passes away, the house automatically transfers to the other spouse. In this form of ownership, creditors cannot pursue your assets to satisfy debts so that it can be a wise move.
Gifting
Strategic gifting is another well-known way of protecting your assets while reducing the size of your estate. You must follow rules and laws, so you should seek legal counsel. You might find you can minimize your estate’s taxable value and protect your assets from potential claims.
Other strategic ways of protecting your assets include insurance policies (designating beneficiaries) and retirement accounts. However, speak with your attorney to ensure you receive the most apt information for you and your family.