Key Reasons why Asset Protection Planning is Important
Asset protection planning is very important if you have any money, investments, or property that you want to protect. If you own a business or are starting one, you also need to make sure you have a solid plan in place to protect your personal assets.
There are many different risks to your financial security, and your plan for asset protection needs to focus on the things that are most likely to impact your nest egg. An experienced Sharonville asset protection planning lawyer at Zimmer Law Firm can provide you with invaluable guidance and advice on how best to protect your money and property. Give us a call as soon as possible so we can get started on putting together a comprehensive asset protection plan for you.
Why is Asset Protection Planning Important?
Asset protection planning is important to keep your property and money secure during your lifetime, as well as to ensure that you are able to leave a legacy to loved ones. There are many reasons why asset protection planning is important including:
- The risk of incapacity: If you become incapacitated, you won’t be able to take care of your property or manage investments. Substantial losses could accrue unless someone trusted and reliable has been appointed to manage the assets. You can plan ahead to ensure you have chosen the right person to manage your assets in case of incapacity. A living trust and/or a power of attorney are useful tools used to protect your assets in case of incapacity.
- The risk of business losses: If you run your own business, you could find yourself faced with the risk of personal loss if the company goes bankrupt or if the company is sued. You don’t want your own personal home or other property to be lost because of business problems so you should explore ways to ensure your own assets are kept safe. Incorporating or forming a Limited Liability Company (LLC) could be the appropriate solution because, as long as you follow corporate formalities, you will limit the risk of loss to money invested in your business.
- The risk of going into a nursing home: The cost of a nursing home can be more than $100,000 per year and nursing homes aren’t covered by most types of insurance, including Medicare. Many people are forced to spend all of their money and even sell property to pay for a nursing home if they need care. Once the money is spent, Medicaid begins to pay. However, if you create an asset protection plan, you can prevent your property from counting when determining if you’re eligible for Medicaid so you can get nursing home costs covered without spending down assets.
- Losses due to estate tax: When you pass away and leave your assets to heirs, estate taxes could be assessed and significantly reduce the value of an inheritance. This is a problem for people with larger estates. As of 2016, estate taxes are assessed only if an estate exceeds $5.45 million. However, people with farms or business assets that count as part of their estate could quickly reach this amount and an inheritance could be at risk if there isn’t enough money to pay taxes on inherited farmland or business assets.
- The risks presented by your heirs: You should protect your money and property even after you are gone. You can structure an inheritance so it will not be lost if heirs get divorced or go bankrupt. You can also opt for the creation of trusts like special needs trusts or spendthrift trusts to meet the specific needs of beneficiaries who will inherit.
You work hard to amass money and property, and you deserve to protect what you have built so you can enjoy financial security in your old age and so you can make a difference by giving to people or causes you believe in after your death. A Sharonville asset protection planning lawyer will help you to create a personalized asset protection plan that is designed specifically for your needs.
Getting Help from a Sharonville Asset Protection Planning Lawyer
Asset protection planning isn’t just for people who are wealthy. If you have any money, property, or investments that you want to protect, you should create a plan. Planning is also important when you are young, because you can protect more of your assets if you take action early.
To learn more about the process of protecting your financial stability, contact a Sharonville asset protection planning lawyer at Zimmer Law Firm via phone at 513.721.1513. You can give us a call today for personalized advice, and you can also download our FREE estate planning peace of mind checklist to find out more of the basics about asset protection and the legal tools available to you.