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Are Your Assets Enough to Warrant an Estate Plan?

October 26, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

The majority of estate plans are drafted by attorneys and this is primarily done because many people are not aware of their rights and responsibilities and may make mistakes in using online forms or do-it-yourself services. Many people also avoid the estate planning process because they do not want to contemplate their own chances of disability or death. This is a necessary component of approaching estate planning.

The good news is that you may have already started the process even if you are not aware of it. If you have designated beneficiaries on your life insurance policy or on your retirement accounts, you’ve already started the ball rolling with the estate planning process. Most people are under the impression that they simply shouldn’t engage in estate planning if they do not have an estate large enough to trigger the federal estate tax payment. consider your assets when estate planning

This is not true because there are a variety of different issues such as who will take over for you if you become incapacitated and unable to manage your financial or health care decisions, as well as the distribution of your personal property, that should be incorporated in an estate plan regardless of the value of the various assets you own. Talking to an attorney allows you to formalize your goals and to learn more about the ways that you may have overlooked potential estate planning issues.

Everyone can benefit from the services provided by an experienced estate planning attorney, because even without having significant assets or millions of dollars that would trigger the federal estate tax payment, you can still learn more about how to protect your family and your loved ones if something were to happen to you.

Tips for Estate Planning After Receiving a Cancer Diagnosis

September 13, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

There are many different events in your life that may prompt you to think about the benefits of estate planning such as purchasing your first home or having a child or becoming a grandparent. Some of the events that occur in your life that can prompt you to consider estate planning can be more difficult than others.

 

Cancer, unfortunately, is a reality that far too many people will face over the course of their lifetime and may impact many people across the country in an indirect or direct manner. Understanding the estate planning steps you can take to protect your assets and your legacy after a cancer diagnosis is important and should be done under the guidance of an experienced estate planning lawyer.

There are new cases of cancer every year that affect 454 out of every 100,000 people and the annual cancer deaths affect 171 out of every 100,000 people. According to nationwide statistics, nearly 40% of women and men will be diagnosed with cancer at some point during their lifetime and cancer mortality is higher for men when compared with women. Impulsive actions caused by panic are common with anyone who has received a cancer diagnosis but sitting down with a planner to discuss the various strategies to address their complex challenges can be extremely beneficial.

An inventory of all items that you own and a prioritized list of steps put together by your estate planning lawyer can help you to tackle the most important steps and determine whether or not you already have existing insurance and force that can help prepare you and your family for this difficult time ahead. If you have questions about how a cancer diagnosis or any other major health issue affects your estate plan, contact a knowledgeable lawyer today.

Asset Protection Planning Beyond the Traditional Trust

June 12, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

 

Most people who understand the basics of asset protection probably have a revocable trust that can be easily changed and will eliminate the need for probate or naming a guardian in the event that you become incapacitated or pass away. However, leaving this as your primary mode of asset protection is risky. This type of trust does not necessarily offer any additional protection against your creditors over the course of your life or after it. This critical lack of protection could make a big difference if you suddenly need money for long term care and you could be exposing your non-liquid assets to significant risk. 

Given that the U.S. Department of Health and Human Services identified that the average cost of long-term care is $138,000 per individual and that 50% of people in the United States will need assistance to meet their long-term care goals after age 65, it’s important to take a long-range view of asset protection as well. Just one negative asset protection event could jeopardize the entire structure of decades of financial planning.

Thinking ahead often requires the insight of an experienced professional like a knowledgeable asset protection planning attorney. With so many things to think about, you don’t want to be caught unaware when it comes to your financial decisions. Just one lawsuit could jeopardize what you have worked so hard to build.

Proper asset protection planning and business planning is the next crucial step for helping families adjust for the rising costs of long-term care. Remember that it can take years for asset protection planning to be effective so it’s a process you need to engage with early and after consulting with a knowledgeable lawyer about.

Asset Protection Planning: Thinking Ahead When You Get Married

May 3, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

Divorce is not inevitable but many people find the process of thinking about their future finances and ending their marriage as extremely difficult when they are just planning the wedding itself. However, a strategic wealth plan can be an important component of asset protection planning. asset protection planning goals

 

Divorce is a risk that every marriage faces. It is strongly advised that every individual thinking about getting married consider asset protection for their own sake as well as for the future of their children and future generations. The best financial protection that an individual who has any significant wealth entering into a marriage can provide is to put together an asset protection trust or classify a dynasty trust.

 

Other multi-generational wealth planning tools can also be advantageous. This protection can help remove the wealth from the hands of future creditors, future ex-spouses, inappropriate beneficiaries or lawsuit decisions. This can also help individuals to avoid starting a marriage without having the uncomfortable conversation about prenuptial agreements.

Asset protection planning is an important topic that parents should always consider, as well as any couple that intends to protect their assets from unintended consequences. There are several different types of assets that you can protect in the process of asset protection planning including:

  •       Real estate
  •       Financial gifts
  •       Inheritances

Having the assets protected inside a domestic asset protection trust or an irrevocable trust is strongly recommended.   

                                                                                      

The Threats for Wealthy Families Are on The Rise

May 2, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

Security threats are more prevalent than ever and multi-family offices are being targeted in the most recent round of attacks. According to a recent study, only 9% of all respondents out of 55 family wealth firms were involved day to day in security risk management. Although up to 73% reported recent concerns associating incidents involving their clients.

 

asset protection planner lawyerA comprehensive asset protection planning approach should always be taken for any wealthy family that is concerned about protecting the wealth they have worked so hard to build. The most prevalent type of financial issue affecting wealthy families, according to the study was credit card fraud.
More than half of the respondents indicated that, at least one of their clients was a victim of credit card fraud in the previous year. Another unsuspecting and yet serious trend has to do with tax returns being hijacked. Given that there are many different ways that high net worth individuals can be targeted, including litigation or a spouse attempting to pursue personal assets as a stake in the divorce, it is extremely important for any high net worth individual to schedule consultation with an experienced asset protection planning attorney to talk over the benefits of advanced planning.

Keep Business Assets Separate from Personal Assets

January 2, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

In the process of asset protection planning, there are many different steps you need to take. You need to begin by separating your business assets from your personal assets. In addition, as you develop income diversity it is equally more important to consider business and personal assets as separate. This helps to protect these assets in different situations. For example, if you become the subject of a lawsuit, your creditors could tap into the businesses that you have worked so hard to build. Ensure that your business structures have been developed properly to protect any personal assets.NJ asset protection lawyer

Making use of trusts is one common way that you can engage in successful asset protection planning situations. An attorney who specializes in the process of asset protection can help you identify the right strategies and documents to assist you with this goal. Getting assistance in managing your assets can be extremely important in the protection process. Having tight control over all of your assets at any time means that someone from the outside can successfully argue that you are truly in control of all the assets and that they are yours rather than being placed inside a trust and having the trust maintain the ownership.

It is very important to have a barrier between you and your assets for this purpose. Unfortunately, there are many different risks that could jeopardize the control and future of your assets. Failing to take action until it’s too late could mean losing access to these assets and generating numerous unnecessary problems. Consulting with an experienced asset protection planning attorney could help.

                                                                                                                

Creditor Protection for IRAs and Beneficiaries: Keep This Estate Planning Tip in Mind

December 12, 2016

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

An individual retirement account offers significant tax-deferred savings as a savings vehicle. Unfortunately, many people don’t realize that tax deferral is not the only benefit than an IRA offers. Another potential benefit is creditor protection in the event that a person has to file bankruptcy. This raises the question, however, of whether or not beneficiaries are protected if the person owning the IRA passes away. 

Investors must think carefully about how their assets should be protected in the event of lawsuits or bankruptcy. This process is known as asset protection planning. In recent years the Supreme Court has helped to provide clarity on these issues. 401(k)s and Social Security benefits as well as pensions have some protection from creditors in bankruptcy proceedings and IRAs do as well. This means that your IRA assets are typically safeguarded and cannot be ceased by a creditor if you choose to file a bankruptcy.

Be aware, however, that this protection does not extend to other types of civil lawsuits, IRS levies or judgements. Your assets may also be protected from creditors based on your state law but bear in mind that these rules vary based on your location. Assets that have been rolled over to an IRA from a qualified plan may not be subject to full protection and the same dollar limits. Consulting with a knowledgeable asset protection planning attorney is strongly recommended so that you can craft a plan most in line with your individual needs and the risks you want to guard against.  Proper asset protecting planning takes place well in advance of a crisis event.

 

Bear in Mind That Asset Protection Planning Does Not Wholly Replace Insurance

December 1, 2016

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

 

Asset protection planning is an important process that allows you to take all of your chips off the table while you are still in good times so that you are eligible to walk away from the table a winner, no matter what happens in less good times. 

Those individuals who worry the most about asset protection should be those who are most concerned about getting sued. Doctors and others with a high perceived value of wealth are at the most risk of being pursued because creditors believe that they have assets to attack. Bear in mind that asset protection planning should be approached comprehensively with the assistance of a knowledgeable asset protection planning attorney.

Asset protection planning in and of itself is not a complete replacement for insurance. It is a myth that asset protection plans will totally scare away plaintiffs. An asset protection plan also doesn’t cover your legal fees in the event that you do need to defend against a lawsuit. Insurance can assist to supplement your current asset protection planning goals and it can help you survive an allegation of fraudulent transfer.

In the event that you do become sued, the insurance company may pay to defend this and settle this since this is what you are paying premiums to have covered in the first place. To learn more about asset protection planning and how you can guard against problems in the future by taking action now, consult with an experienced New Jersey asset protection planning lawyer.

 

Why Worrying About Asset Protection Planning is Worth It

November 1, 2016

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

In today’s busy world it’s easy to overlook the numerous responsibilities that you have on your plate. Thinking about estate planning, running a business, managing your family, and dealing with all of the details associated with day-to-day life in the US can be overwhelming. That being said, you have worked so hard to establish your assets and your growing wealth. 

In the event that you ignore these, you could find yourself in big trouble down the road if you do not engage in the process of asset protection planning. One of the most important things you can do is to set up a meeting with an experienced asset protection planning attorney.

Without a plan in place, you expose yourself to risks associated with a divorce, lawsuit, or creditors coming after you. In the blink of an eye, all of your assets may be exposed immediately in just one unfortunate event. If you take some time to continue the planning process with a lawyer is important. 

You have put a lot of effort into protecting your family and building your own personal legacy. You should be concerned about protecting it, too. There are many different strategies available to you that can help you accomplish estate and asset protection planning goals at the same time. You should not hesitate to reach out to a lawyer when you find yourself in this situation.

If I Don’t Take Any Steps for Asset Protection Planning, Are All of My Assets Exposed to Creditors?

September 5, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

Most people who have never engaged in the process of asset protection planning before may wait until it is too late to take appropriate action. Although it is certainly worthwhile to reach out to an asset protection planning attorney in the event that you are already exposed to a claim, there are limited things that an attorney can do as far as developing strategy to prevent this problem from escalating. 

 

The best time to visit someone to talk about asset protection planning is well in advance of a problem emerging.

 

Many assets can be exposed to creditors but some are protected under federal laws. For instance, if you have an ERISA governed qualified retirement plan like a 401(k), these are essentially out of the reach of the creditors in all but a few limited circumstances.

 

State laws may also protect certain assets like as his or her primary residence, but bear in mind that the level of protection will vary from one state to another. The majority of states will also protect individual retirement accounts but not all states will offer the same level of protection to Roth IRAs.
Many individuals will carry life insurance policies as an additional way to pass on assets to future beneficiaries. Meeting with an asset protection planning attorney and discussing all of your options is the best way to determine whether or not you have a comprehensive asset protection planning strategy already set up.

Set up a meeting today to talk over your options by reaching out to info@lawesq.net.

Is Your Revocable Trust Actually Protecting Your Assets?

August 31, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

Everyone should be concerned with protecting assets even if you do not believe that you currently have an estate big enough to warrant protection. Of course, wealthy people must consider asset protection because their assets are more at risk and they may become a more frequent target of a major lawsuit. 

However, many people tend to confuse estate planning tools with asset protection planning tools and the most commonly misinterpreted tool is that of a revocable living trust. Many people who put together a revocable living trust may have an inflated sense of security that this accomplishes both their estate planning  and their asset protection planning goals with a living revocable trust, when in truth, it may be that they have significant assets still exposed to risks with creditors.

A revocable trust is often used to hold assets while the person creating the trust is still alive. Assets can be moved in and out of the trust as the individual wishes and the trust will often avoid the costly and lengthy process of probate. However, you should not count on your revocable living trust as a comprehensive safeguard from civil judgements or creditors. A revocable living trust is also not an effective vehicle to avoid paying taxes. Instead, you may want to consider other asset protection planning services that you can learn more about by speaking with an experienced asset protection planning attorney. There are many different concerns you may have in this process and this is why it is essential to work with someone who is familiar with various strategies of asset protection planning.

 

Checklist of Questions That Every Business Owner Needs to Ask

July 5, 2016

Filed under: Asset Protection Planning,Business Succession Planning — Neel Shah @ 9:15 am

There are several different questions that you need to ask in order to ensure that you have protected yourself against risks and engaged in proper planning. shutterstock_189579146

Do All Owners of the Business Have an Updated Buy-Sell Agreement?

A buy-sell agreement determines what happens to ownership interests and the business if they need to be transferred due to a disability, termination of employment or owner’s death.

Have You Reviewed Your Legal Structure at Least On an Annual Basis?

Whether you’ve been in business for awhile or whether you’re new to the game,] make sure that your business structure is always set up in the most advantageous manner.

Has a Succession Plan Been Outlined?

You need to ensure that the ownership and authority have been outlined when a business owner transitions and it is passed on to someone else.

Is There an Emergency Management Transition Plan/Procedure in Place?

Make sure you have a plan in the event that a key individual suddenly becomes incapacitated, unavailable or deceased.

Does Your Business Have Regular Shareholder’s Meetings and Annual Directors Meeting?

You should always schedule these in order to update the stock book and corporate minute book.

Do You Have Updated Contract Forms that Have the Clear Business Terms and Conditions

These forms should have clear terms and conditions aligned with protecting your business.

Have You Reviewed Any Potential Liabilities, Litigation Risks and Obligations?

The business should have a plan to guard against exposure, but you should also make sure that individual owners also have their own personal asset protection plans.

Do You Have an Employee Handbook?

Your employee handbook should include key terms about disabled employee rights, family medical leave, law changes involving discrimination, social media and sexual harassment.

When Hiring Employees, Do You Have Them Sign Noncompete Agreements, Non-Disclosure Agreements & Confidentiality Agreements?

This can be an excellent way to protect the business you have worked so hard to build and to lay ground rules from the outset of working with a new employee.

Is a Business Executive Compensation Plan in Place?

One of the best ways to reward loyalty is to ensure that you have rewarded retaining key employees and enhancing their commitment to your company.

Are Business Owners Thinking About Growth?

Are you thinking about acquiring other companies and growing your company in this manner?

Are you Thinking About Selling the Business to Someone Else?

If you are thinking about ultimately selling the business, or if you have received increase from someone interested in purchasing the business, there are many different things you need to prepare for.

Have Any Owners of the Business Expressed a Desire to Leave or Separate?

This is one more reason why you need a business succession plan in place.

Do Business Owners Also Have Ownership in real Estate Where the Business is Located?

Make sure that you have reviewed the recent developments and changes in the law and ensure that the legal structure of real estate ownership has been analyzed recently.

Have You Developed an Asset Protection Plan to Minimize Your Exposure to Liabilities?   

Make sure your plan covers all potential liability exposure. You can discuss this further with your New Jersey asset protection protection planning attorney.

 

Comprehensive Asset Protection Planning Checklist

June 27, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

There are many different areas in which you may be vulnerable to a predatory attack during a lawsuit. For example, regular business activities, owning real estate, or operating a motor vehicle could all expose you to potential lawsuit risks.asset protection planning checklist NJ

Most people are aware that lawsuits are more common in our society today than they have been before. That being said, far too many people do not give enough attention and planning to the benefits of guarding against these risks. This process is known as asset protection planning, a form of risk management planning that can be helped by asset protection planning attorney.

The ultimate goal of asset protection planning is to prevent lawsuits from happening. The following questions should always be asked as you go through the process of asset protection planning.

  1. Have you consulted with a knowledgeable insurance consultant about an insurance adequacy analysis for your business as well as you personally?
  2. Do you understand the benefits and basic structures of traditional asset protection planning arrangements within your state as well as a limitation of each, including:
  • Holding assets in qualified employer-related retirement plans and IRAs
  • Using life insurance policies and annuities
  • Owning property and joint names with your spouse
  1. Do you understand how trust can benefit your asset protection planning goals?
  2. If you do have real estate, do you have it owned in a manner that will limit your personal exposure to risks?
  3. Is your business structured properly in order to minimize your personal exposure to lawsuit risk?
  4. Has your business been properly structured and analyzed in order to prevent exposure of assets based on present or future creditors of the owners of the business?
  5. Have you structured an operating agreement, a shareholder agreement, or partnership agreement that has asset protection planning provisions within it?
  6. Are your investment or business assets separated into different legal entities to protect one group of assets from being associated with another?
  7. Do all of the formalities associated with the operation of your business such as having a separate bank account, not intermingling business transactions with personal, executing legal documents in the right manner, keeping regular minutes, and keeping separate records?
  8. Do you know how to structure asset transfers in the most effective manner in order to minimize any exposure to fraudulent conveyance laws?
  9. Do all of your personal estate planning documents have designated provisions associated with protecting assets passing to your children or your spouse?

Are you ready to discuss your next steps? Shah & Associates is here to help you with all your New Jersey asset protection planning concerns. Reach out to our office today to learn more. Set up an appointment by contacting info@lawesq.net .

What’s an Asset Protection Trust?

June 14, 2016

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

The asset protection planning trust is still a relatively new tool for those interested in guarding against risk. In the late 1990’s, Delaware enacted legislation that allows for transferring in assets to a trust that is classified as a qualified deposition rather than a fraudulent transfer, and for this reason more individual than ever are interested in learning about Delaware asset protection trusts. The trust has to be irrevocable and the trustee must be involved in the administration of said trust in order for this document to be legally valid. New Jersey asset protection planning

Furthermore, the trust must be governed by Delaware law and the trust must include a spendthrift clause. Usually, a trust like this will name a settlor as a beneficiary of the trust, but it’s recommended that you also name discretionary beneficiaries, too. This allows the settlor to have more flexibility as time goes on in the event that the settlor may want to enact distributions to loved ones, for example.

Establishing a Delaware asset protection trust on its own is not enough to shield you from a potential lawsuit. An asset protection trust can be attacked by a creditor in certain situations. Usually, a successful threat to your APT depends on situations in which the settlor has moved the majority of his or her assets into the trust, circumstances where the settlor was aware of pending litigation issues, or any fraudulent transfers. The best way to protect yourself from a situation like this is to consult with an experienced asset protection planning attorney both as you set up the trust and as you discuss the life of the trust, too. It’s just as important to manage a tool like this properly so as to avoid future problems.

Do you have questions about asset protection trusts? Are you concerned about shielding your assets from creditors? If so, set up a meeting with an experienced New Jersey estate planning attorney. Contact our office at info@lawesq.net to set up a meeting today.

 

 

 

Why Everyone Needs Asset Protection Planning

May 30, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

Some people view asset protection planning as an illegal or immoral practice, but that’s not really the purpose of this kind of planning. In fact, when done appropriately, asset protection planning can help you accomplish your goals and shield the wealth you have worked so hard to accumulate.asset protection NJ

While it is certainly true that all kinds of professional definitely need asset protection planning, this is true for everyone. The reality is that anyone could be exposed to a lawsuit in which his or her personal assets may be tapped by a creditor or predator.

In fact, asset protection planning breaks down to three primary goals:

  • Deferring lawsuits in the first place
  • Helping give you settlement negotiation power
  • Preventing your personal assets from being seized in the event of a judgment

Asset protection planning also has an added benefit of giving a layer of privacy to your personal assets as well, which is desirable to most people who are accumulating or who have already accumulated substantial assets. Various legal and business entities can be used to help shield your personal assets.

Even if you are not currently facing a lawsuit, most people are aware that litigation presents significant obstacles. Paying for a lawsuit, even if you are ultimately successful, can be frustrating. You may have to expend time and legal fees in order to accomplish successfully deflecting a lawsuit, and any situation in which you may be able to avoid this altogether can benefit you.

What you use for asset protection planning depends on your individual goals, but you can discuss the options with an experienced New Jersey asset protection planning attorney. Remember that if you are already facing a lawsuit, it could be too late to take advantage of the strategies and tools used to protect you.

Are you ready to talk through your options? Contact our office today at info@lawesq.net.

Are You Falling Victim to This Asset Protection Planning Myth About Bankruptcy?

May 24, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

There are several different important steps you should take when it comes to the asset protection planning process. One of these includes getting the right help form an experienced asset protection planning attorney.

Having the right insurance is an important foundation of your asset protection planning strategy but it is not part of your comprehensive approach. If you are a professional individual, for example, you may choose to invest in errors and omissions insurance to protect you in the event that somebody sues you when losses are experienced. You may also want to consider an umbrella insurance policy.bankruptcy and asset protecting planning

Many wealthy individuals simply face a higher risk of being sued because an opportunist may believe that you have the assets appropriate to support a lawsuit. A liability insurance policy, however, can protect your assets when someone attempts to link you to an injury or damage that happened on your property. The second step of asset protection planning involves separating your business from your personal assets. As soon as you begin growing your income diversity, it is important to take this step.

Working with an asset protection planning attorney can help you ensure that your business structures are properly divided in order to shield your personal assets to the best extent possible. It is important to understand that many individuals have misconceptions about the role of bankruptcy in asset protection planning. Bankruptcy could be a helpful asset protection planning strategy, although since 2005 this has become less and less true. New bankruptcy rules make it more difficult to file for Chapter 7, for example.

Bankruptcy judges also have a high level of discretion in cases. If you attempt to file for bankruptcy protection after somebody comes after you in a lawsuit, this does not mean that you are comprehensively protected. You need to consult with your asset protection planning attorney to understand when bankruptcy makes sense and when it doesn’t. Reach out to info@lawesq.net if you’re ready for a more comprehensive approach to asset protection planning.

 

What Asset Protection Planning is Not

May 13, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

It has only been in the last decade or so that more individuals are realizing the serious benefits of asset protection planning. This is primarily due to the fact that more people in the U.S. see the litigious society and the serious risks that an individual could be exposed to with just one lawsuit. There are, thankfully, plenty of meaningful and effective asset protection planning strategies, but it’s also important to know what this process will not do for you. asset protection planning new jersey

You cannot use asset protection planning, for example, to avoid paying your taxes. In addition, this kind of planning is usually effective for protecting assets but not hiding them. Bear in mind that an asset you hide could ultimately be found, but one that has been protected is much more secure overall. Finally, an asset protection planning attorney does not engage in asset protection planning with a client under the guise of defrauding creditors.

This kind of planning is the most valuable when you engage in it long before you have an issue. Trying to get legal help in organizing things when a creditor is already attacking your personal assets is much like a day late and a dollar short. The most effective plans are those you have in place well before an issue occurs, and you need an experienced and knowledgeable attorney to help you get there. Do not hesitate to reach out to someone with experience in this field.

 

 

If I Fail To Take Action With Asset Protection Planning, Are All Of My Assets Exposed To Creditor Risks?

May 3, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

Although there are many assets exposed to creditors if you do not engage in the process of asset protection planning. Federal laws do protect particular assets. For example, a qualified retirement plan governed by ERISA, such as a 401(k), is protected. These are mostly out of reach to creditors except in a few select circumstances. State laws may also protect various assets as well. The majority of states do protect traditional individual retirement accounts.shutterstock_292965230

Many individuals may also use a life insurance policy to help protect them from potential creditor claims. This allows you to also have the peace of mind that there will be finds left behind for your loved ones in the event that something happens to you. Although there are select circumstances in which some of your assets may be protected from creditors if you take no action, it is strongly recommended that you consult with an experienced asset protection planning attorney to protect as much of your estate as possible. It can be an unpleasant surprise for a lawsuit to arise and to have all of your personal assets potentially attached to this.

Having an asset protection planning attorney is vital to long-term success because you need to be able to mitigate risk at any given time. A long-term approach to asset protection requires regular review so that you can prevent problems before they happen. Even though some of your assets may be shielded already, this does not mean you are fully protected. Contact a New Jersey asset protection planning attorney to learn more.

How Liability Insurance Can Help with Your Asset Protection Planning

April 27, 2016

Filed under: Asset Protection,Asset Protection Planning — Neel Shah @ 9:15 am

The first line of defense to protect of your assets from future claims is to consider insurance. This is because insurance on its own can help to mitigate a significant number of risks. You should also, of course, consult with a knowledgeable New Jersey asset protection planning attorney to learn more about your options and to discover other strategies and tools that can be useful in this process.shutterstock_325745573

Some of the most common types of insurance that can be used to help ward off potential lawsuits and attachments to your personal assets include malpractice, business, automobile, homeowners, umbrella, and long-term care policies. Liability insurance is essential for providing the funds necessary for paying damages and it can also frequently include payment of some or all of the legal fees linked with a lawsuit.

Now is the time to get an umbrella policy if you do not already have one. It is relatively inexpensive to obtain an umbrella policy when thinking about more advanced ways to protect your individual assets. That being said, you may also choose to use both methods to protect your assets significantly. Verify that all of your policy limits on any existing insurance policies are well in line with your net worth. It’s a good idea to evaluate this on a yearly basis so that you can determine whether or not you need to make adjustments.

                 

Benefits of Working with Attorneys and Advisors Who Are In the Know

April 25, 2016

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

There are many different reasons that you should always consult with a knowledgeable attorney and advisors in the event that you have any kind of a legal issue, and a recent 60 Minutes report regarding investigations into the life insurance industry only highlights this point.shutterstock_17080654

According to audits of major life insurance companies, it has been discovered that there is a systematic practice of behavior avoiding paying numerous beneficiaries. Individuals who take out a life insurance policy typically pay premiums and expect that when they pass away that your loved ones will receive the death benefit. In some recent settlements, however, more than 20 of the nation’s largest life insurance companies have paid over 7 and a half billion dollars in back death benefits.

There are also 35 life insurance companies who have currently not settled and are still under investigation for failing to pay in the event that the beneficiary was unaware that there was a policy, which is not that uncommon. Some beneficiaries never come forward because they do not know that the policy exists.

Working with a knowledgeable advisor and attorney in this situation can increase the chances that your benefits will make their way to the next of kin. Your estate plan should include legal documentation as to who gets what but also go through the process of integrating assets into your plan for maximum benefit.            

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