Which Steps Are Involved In Asset Protection Planning?
The steps involved in asset protection planning will start with conducting an analysis regarding which assets of the individual are already protected and which are not but need to be. If someone comes to us and most of their assets are already protected by law, such as a 401(k) plan, an IRA, equity in their house or the cash value of their life insurance, they may not need asset protection planning at all.
On the other hand, if the analysis showed that a substantial number of assets were at potential risk, the next step would be to determine the best vehicles available to the client and to then put them into motion. People shouldn’t wait until they need to protect their assets. If they do, when a problem does arise, remedies will be far more limited.
If Someone Puts Together an Asset Protection Plan, Do They Lose Control Of Their Assets?
A person can lose some control of their assets by placing them in certain types of trusts. Essentially they are placing them under the control of another party to some extent. There are, however, ways to make sure a client retains complete control of those assets by using a limited liability company or a partnership instead of an asset protection trust. If a limited liability company or a limited partnership is used and then transferred into a domestic asset protection trust, the client can retain a lot of control in the role as manager of that company or partnership.
It is imperative that people retain an estate planning attorney who is experienced with asset protection planning. This is not an amateur hour activity. It is a sophisticated type of planning that needs to be done by people who are experienced in doing it, so that it can be done effectively.
For more information on Steps For Asset Protection Planning, a free initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (314) 542-2210 today.
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