Asset Protection and Estate Planning
An Asset Protection plan and/or estate plan is essential If you have wealth or plan to accumulate wealth. When you are wealthy, there are those who want to take it away from you – lawyers, creditors, ex-employees, ex-spouses, ex-business partners, and don forget – the IRS!
We help clients protect their wealth from lawsuits, judgments, and taxes, while still remaining in control of their assets. You could certainly avoid a lot of headaches transferring all your assets to your spouse or children. However, you will lose complete control. We set up your assets so you still have control, yet minimize your liability for lawsuits and taxes.
Our asset protection plan strategies include:
Family Limited Partnership or LLC
A “Family” limited partnership or LLC can protect your assets from creditors and reduce your estate tax obligations significantly. Under state law, a creditor of a multi-member LLC or limited partnership is limited to a “charging order” in collecting a judgment. This basically means that the creditor cannot force the sale of your LLC or partnership assets to satisfy a judgment. Further, when you place assets into an LLC or partnership, properly created, you can reduce the valuation of your estate by as much as 40%, potentially saving hundreds of thousands in estate taxes.
Land Trusts are a way of masking your ownership of real estate, which makes it difficult for the typical “contingency fee” lawyer to find. The old saying goes, if it looks like you’re broke, nobody wants to sue you. Land Trusts take property out of your name so that a cursory search of the real estate records shows nothing.
Equity stripping involves placing “friendly” liens on your assets in favor of an entity you own or control. This will not stop creditors with a legitimate judgment, but it will, at first blush, make it appear as though your assets are highly encumbered. Again, the old saying goes, if it looks like you’re broke, nobody wants to sue you
Placing all your assets into an LLC or other entity does not protect your assets, it only protects you. Breaking up assets into different classes and owning then in different LLCs will reduce your risk of losing too much from a claim involving one of your assets. These separate entities are owned by a common master entity, such as a multi-member LLC or Family Limited Partnership. In some cases, we recommend a Delaware Series LLC.
Our Strategies Include:
Last Will & Testament
This document will direct the succession of your assets, who will be the guardian of your children, and who will administer your estate.
Living Trust with Pourover Will
A living trust will help you avoid probate, and in some cases will reduce your estate tax liability. A Pourover Will is a backup that puts into the trust those assets you forgot to title in the trust name while you were alive.
Medical Durable Power of Attorney
This document is important because it gives someone you trust the power to make medical decisions for you if you are unable to do so.
Financial Durable Power of Attorney
This document is important because it gives someone you trust the power to make financial decisions for you if you are unable to do so.
This document is a statement or declaration as to your wishes regarding medical or surgical treatment.
If you’d to discuss your Colorado Asset Protection plan or estate plan, please contact us for more information by clicking here or calling us at 303-398-7032.