What is Wealth Protection Planning?
Wealth Protection Planning, also known as asset protection, is the process of safeguarding one’s wealth against those who may have claims against it, such as creditors, former spouses and litigants. Protecting your assets will allow you to eventually pass your wealth to your heirs with minimal taxes and without court proceedings. This is often done by converting your wealth into an asset-protection trust and, which is how you could keep your assets out of the jurisdiction of the court.
How Can An Attorney Help Protect Your Wealth?
Getting started on an asset protection plan can be a process that could be challenging. For that reason alone, you should not have to go through this process alone. Finding and working with an experienced wealth protection attorney and financial planner can help you create a plan without the stress that you could when creating a plan on your own. An NYC wealth protection attorney who specializes in asset protection and in creditor protection of your estate can analyze your case and recommend strategies designed to achieve your asset protection and wealth preservation goals. If you are in need of an asset protection attorney, call (718) 333-2394.
When Should You Start Protecting Your Assets?
The best time to start asset protection planning is before problems such as a lawsuit arises. The law makes it extremely difficult to block current creditors from accessing assets and implementing wealth protection measures during the time that a lawsuit is occurring. Despite there being ways to protect yourself after someone sues you, it is highly recommended that you do so before any of these types of issues occur. During a lawsuit, courts are able to reverse transfers of many assets into protected accounts under the control of someone within their jurisdiction. Creating a wealth protection plan now, before problems arise, is extremely important and finding a qualified lawyer to help you through this process is equally as important.
Different Ways to Protect Your Assets:
A wealth protection attorney is a lawyer with experience in helping clients find legal solutions that will protect your assets from liabilities such as lawsuits, bankruptcy, creditor claims, etc. that could arise in the future. Meeting with an asset protection attorney allows the attorney to discuss the advantages and disadvantages of certain asset protection tools with their clients. Some of the most common tools include:
Asset Protection Trusts: An asset protection trust (APT) is a type of financial-planning trust vehicle that holds an individual's assets. The purpose of an asset protection trust is to shield your wealth from creditors. Asset protection trusts offer the strongest protection you can find from creditors, lawsuits, or any judgments against your estate.
Corporate Structures: Asset protection for business owners can be complex, especially when business activities may put personal property at risk. Fortunately, there are many strategies business owners can use to protect personal and business property. LLC’s and S-Corp are great tools for asset protection. They both provide protection for your personal assets and come with multiple tax advantages. Before settling on one option for your business, make sure to consult with a licensed asset protection attorney who can help guide you along the path of deciding which type of business entity will benefit you in the long run.
Retirement Accounts: Retirement accounts are investing tools for people looking to save up in preparation for their eventual retirement. Some of the most common assets placed into these accounts include mutual funds, stocks, bonds, real estate and other investments.
Should I Combine My Estate Plan with my Wealth Protection Plan?
It is highly recommended to combine your estate plan with your wealth protection plan. It is extremely important to complement a properly executed estate plan with a comprehensive asset protection strategy. Having an estate plan that is in sync with your asset protection plan can alleviate any legal complications that could arise when your estate goes through probate and your assets need to be distributed.
What is an LLC?
A limited liability company, also known as a LLC, is a United States-specific form of a private company. It is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability aspect of a corporation.
What is an S-Corporation?
An S-Corp is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. It is a special feature of business ownership within the United States that allows for a corporation to avoid double taxation because it is not required to pay corporate income taxes on the profits of the company. In an S-Corp, all profits and losses are directly passed on to the shareholders of the company.
The Law Office of Inna Fershteyn distinguishes itself from other estate planning law firms in New York and New Jersey areas in that our estate planning is integrated with wealth protection planning recommendations. Our clients receive significant tax benefits by doing their estate planning early and are protected from creditors by preparing for potential lawsuits and restructuring their wealth to avoid losses from future lawsuits. Our wealth protection protection planning focuses on both tax savings and wealth preservation and safeguards client assets from potential divorce proceedings, creditor and litigation exposure ahead of time. To schedule an asset protection consultation with attorney Inna Fershteyn, call (718) 333-2394