Asset protection planning, no matter what anyone tells you, was never meant to be a tax avoidance tactic. Asset protection planning is a legal option for planning your wealth in advance of a claim or the threat of a claim.
Asset protection planning is used to improve your bargaining position, make options available for settling claims, and avoid litigation – not to escape paying your taxes or debts or hiding your wealth from certain people.
And while there are some who insist asset protection planning is a form of cheating, this is only a perception because the truth is: There are some who try to use this option to cheat and lie, but it does not make it right and eventually they get caught.
For those who want to do it right, the logic behind asset protection planning includes:
- Protecting your family from litigation.
- Preventing unscrupulous persons from suing you because they think you have “deep pockets” and can afford to “share” your wealth.
- Making sure all liabilities are taken care of according to your wishes.
Understanding Asset Protection Planning
The goal of asset protection planning is to keep your wealth as intact as possible. These include hard-earned money and properties, and inherited assets. You would want to protect these assets from being taken away, legally or illegally, by creditors, predators, and others.
The first step to do is to list your assets and liabilities. An estate planner can help you sort them out and plan a strategy that will keep the maximal amount of your wealth intact and free from possible siphoning off by anyone.
The initial steps to be taken by the estate planning lawyer will help in improving your bargaining position and provide you with different options for settling liabilities and possible claims. The ultimate goal is to prevent any lawsuits from threatening any portion of your wealth unnecessarily.
The next steps to be taken include planning for the payment of taxes and foreseeing any possible problem that may arise to threaten your wealth – and taking steps to avert the problem from escalating into a major financial disaster.
It Is Legal, and More
Asset protection planning is not just legal; it is ethical. People who work hard for their money to increase their savings, retirement fund, and properties have a right to protect these so they can leave them to their loved ones or use them for emergency funds.
Anyone who approaches an estate planning lawyer can expect due diligence in applying this legal right to their assets, provided they do not offer advice that would lead to a criminal or illegal act. One of the key red flags to observe is when a lawyer guarantees protection, even if there is already a lawsuit that has been filed.
Asset protection planning is a mature financial decision that is not just smart but also forward-thinking. If you need help with the management of any of your assets, or you want to protect your assets from your liabilities, consult with an estate planning lawyer today.
The estate lawyers of Krause Donovan Estate Law Partners, LLC practice law in the areas of Probate, Wills, Estate Planning, and Trusts. We assist clients in and around Madison, Wisconsin with all matters related to estate planning, trusts, and probate matters. Our dedicated attorneys will even make house calls if you are unable to come to our office.
Contact our office by calling (608) 268-5751 to schedule a consultation or use our online contact form.