I recently wrote on the basics of asset protection. If we get sued, if we go bankrupt, what happens to our assets? For many of us, this the asset protection concept is important – we want what we have worked for to be there for us and our loved ones.
You already utilize some asset protection techniques without even realizing it. There are laws on the books that provide certain protections for your primary residence and for your retirement savings (i.e. IRA). You have insurances, such as home owners, car and general liability, that add further protections. But can more be done?
The “law school answer” is: “it depends.”
Depending on your particular situation and your goals, there are additional legal solutions to bolster your asset protection. The attorney’s toolbox is full of trusts and business structures that further limit your risk of loss should something bad happen to you.
Some of the devices include:
- Limited Liability Company (LLC)
- Family Limited Partnership (FLP or FLLLP)
- Qualified Personal Residence Trust (QPRT)
- Irrevocable Trust (IT)
Call us today to discuss the techniques that would work best for your situation; or if you want to, at the minimum, make sure what you leave to your loved ones is protected.
Contributed by Morris Hall PLLC Albuquerque, Santa Fe and Las Cruces Estate Planning Attorney and Partner, James P. Plitz.
About Morris Hall, PLLC:
At Morris Hall, PLLC we have focused our legal practice on estate planning for over 45 years. Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects. We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Carefree, Tucson, Oro Valley, Prescott, Sedona, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.
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