Act in Advance to Preserve Assetsby Roy Litherland (Law Office of Roy W. Litherland)
There are individuals who are naturally more exposed to potential legal actions than others, and for these people asset protection should be a priority. You have to act in advance to preserve your assets because your hands are tied once a suit is initiated.
The best way to proceed is to sit down and discuss your unique situation with an experienced estate planning attorney. Ideally, the goal should be to fold asset protection into a comprehensive plan that sets you up financially throughout your life while culminating in the passing along of a robust legacy.
One way that people often protect their homes from creditors or claimants is by placing the properties into qualified personal residence trusts (QPRTs). You also gain tax advantages by going this route because you remove the house from your estate.
There is the gift tax to deal with, but the taxable value of the home is greatly reduced as you retain interest in it while you continue to live there. It should be noted that these trusts can be utilized for a second property as well, and this is a per person allotment so your spouse could also place two properties into QPRTs.
This is just one asset protection tool that may be appropriate under some circumstances. Other possibilities include limited liability companies, family limited partnerships, offshore trusts, and family savings trusts.
Should you like to discuss your financial future with an expert, there’s no time like the present. Take action right now to arrange for an informative consultation with a seasoned and savvy San Jose estate planning lawyer.
Experienced estate planning attorneys Campbell CA of the Law Office of Roy W. Litherland offers estate planning and business planning resources to residents of Campbell CA. To learn more about these free resources, please visit www.attorneyoffice.com today.