How Does Asset Protection Differ From Estate and Financial Planning?

Estate planning, on the other hand, deals with arranging – in compliance with your wishes – how your assets will be used in the event of your illness or incapacity; and how they'll be transferred during your life and at your death to your chosen beneficiaries.

General planning considerations include how to legally hold some of your assets to enhance efficiency in the transfer process and minimization of estate and gift taxes. Important, too, is how to hold those assets financially – such as under qualified plans, IRAs, and the like.

Financial planning involves arranging your saving and investment programs to achieve certain goals like buying a car, paying for a college education, buying a house, or working your way into financial independence. It's generally a younger person's approach to planning for the future. You can hire Santa Barbara asset protection lawyers via various online websites.

Both estate and financial planning do include some 'soft' asset protection. IRA and other qualified plans do carry some protection from typical creditors. And various state homestead laws protect a limited amount of home-related wealth.

But asset protection's main concern is a protection of assets. It's not for avoiding taxes and must, formally, be within legal bounds. Strategies you can use for holding 'protected' assets may produce no 'taxable' earnings, but that's a side issue.

The 'hard' asset protection strategies involve removing your assets from your control and often from you as a known beneficiary. The intent here is that if no one knows what wealth you may have access to, then you can't be ordered to turn that wealth over to someone else.

, , , ,

No comments yet.

Leave a Reply

Read previous post:
Make A Great First Impression At A New Company

People automatically form ideas and impressions of others within just a few seconds of meeting for the first time. These...