Asset protection is a huge part of responsible estate planning. It encompasses various goals such as orderly distribution of your estate after your demise, protection of existing assets from creditors and inheritance to ensure it isn’t lost in a divorce proceeding or lawsuit as well as reduction of estate taxes. In this blog we’ll discuss asset protection tools.
Asset Protection Tools
Your asset protection lawyer should have an understanding of the tools available in order to meet your asset protection goals. The tools include:
Establishing a Trust – Assets that are held in a trust do not belong to the individual grantor but to the trust. You can use trusts to protect your assets while enjoying your wealth. Trusts can also be used to transfer life insurance to beneficiaries, manage funds for minor children and limit the need for probate.
Sign a Prenuptial Agreement – Your partner has a right to assets and to a portion of the funds accrued during your marriage under Texas law. It’s wise to speak with an attorney about options before marrying to protect your property in a way that’s fair and respectful to the person you’re about to marry.
Paying Attention to Estate Tax Minimums – Your estate is responsible for remitting taxes to the IRS after your death if your assets are valued above the prescribed tax codes. The amount is reduced by lifetime gifts you make above the amount that’s excluded for annual gift tax. However, you can leave your spouse with an unlimited amount without estate tax consequences.
Get Legal Advice from Asset Protection Lawyers in Frisco, TX
Our asset protection attorneys will analyze your asset protection claim to ensure you get a favorable outcome in court. We’re available throughout each stage of your case to answer your questions. Contact us today on 469-202-3096.