Identifying appropriate asset protection strategies is something which everyone should consider doing as they begin to build wealth and as their risk of loss increases with age and life events. A lot of people think that asset protection is something primarily done by the very wealthy, but this is not the case. A lot of middle class and average people who have worked hard to grow a business, work a farm, or build a nest egg could benefit from asset protection.
If you are interested in asset protection, you will need to use the right asset protection strategies in order to achieve your goals. Unsworth LaPlante, PLLC can work with you closely to identify what your biggest risk factors are for the potential loss of your assets.
We can help you to develop and carry out appropriate asset protection strategies that will ensure your wealth is used to benefit you and your loved ones and to provide both financial security and a strong legacy for you. Give us a call to speak with a Vermont asset protection lawyer to find out more.
Choosing Asset Protection Strategies
The asset protection strategies that are best for you will be determined based on your individual risk profile. A person who has built up his own business or a family who is running a farm operation is going to have different needs than people in other situations who may have the bulk of their investment dollars in stocks and bonds and who earn their income from a traditional employment relationship.
To make sure you address the biggest risks in your personal situation, an asset protection lawyer will discuss with you what types of wealth you have, how you earn your living, and what your goals are for your money. You should begin the process of talking with an attorney early as you build your nest egg, as asset protection strategies must be carried out in advance of the time when you actually face risks that could result in the loss of money or property.
What are the Top Asset Protection Strategies?
Although the best approach is one that is tailored to you, there are certain common asset protection strategies which have proved to be beneficial for a significant number of people. Examples include:
- Creation of trusts. Different kinds of trusts offer varying types of asset protection. For example, if your biggest risk is the cost of nursing home care and you want to get Medicaid to cover that care, you will need an irrevocable trust. If you are worried about other issues like estate taxes, delays in asset transfer resulting in mismanagement, heirs squandering assets, or asset management during incapacity, you will need to select the type of trust that best protects against your biggest risks.
- Creation of a power of attorney. This is a form of asset protection focused on making sure your assets are immediately and appropriately managed during periods when you become unable to manage them. If physical or mental illness prevent you from exercising judgement and acting appropriately of your own accord, an agent may step in when you have created a power of attorney and designated an appropriate person to act for you.
- Utilization of protected accounts. You can make investments in an IRA or other dedicated retirement account in order to benefit from the protection provided for these accounts. These accounts are treated with special rules, such as not being required to be turned over in case of bankruptcy liquidation.
- Incorporation or formation of an LLC. This is one of the most important of the available asset protection strategies for anyone who is running a business. If you do not structure your company in the appropriate entity type, you face a risk to your personal assets in the event that the company is forced to go bankrupt or the company is subject to a lawsuit that it loses. By making your business a separate entity distinct from you in the eyes of the law, you will not have to worry about this issue and your personal wealth can be kept safe even if something happens to your business.
These are just a few of many asset protection strategies worth considering as you work with an attorney to protect your financial security.
Getting Help from a Vermont Asset Protection Lawyer
If you are ready to begin developing your personalized asset protection plan, call Unsworth LaPlante, PLLC today. Our legal team will provide you with the assistance you need to make full and effective use of asset protection strategies available under Vermont law. Give us a call at (802) 879-7133 or contact us online to find out more about the ways we can help and the strategies you can use.