Posted on: 20 November 2023Share
Without a doubt, estate planning can be a challenging process as it involves your lifetime possessions. However, once it is completed, it will provide you with peace of mind. In this blog, we delve into the important role played by an estate planning lawyer in asset protection.
Protecting an Estate from Unnecessary Tax Burden
Estate planning lawyers have the expertise to create tax-efficient structures that aim to protect an estate from a high tax burden. Receiving consultation from an estate lawyer on how to distribute your property and assets is critical as it can influence matters like the size of estates that are subject to estate taxes, the amount of taxes to be paid, and when they need to be paid.
Providing Clarity over Asset Distribution
It’s common in families for some members to want specific assets while others don’t want them. An estate planning lawyer can help with writing down the specifics of how your assets should be distributed to ensure that every family member gets what they want. With such clarity, disputes over assets can be minimized, leading to a smoother transition of wealth from one generation to the next.
Constructing Asset Protection Trusts
An estate planning lawyer can also help create trusts that protect the assets in them from creditors. For example, a trust protects the estate from claims by third parties in situations such as bankruptcy, divorce, or lawsuits. Similarly, when a family member who inherits property from you is going through a tumultuous time, this trust safeguards that inheritance from seizure.
Planning for Incapacitation
Estate planning isn’t only about transferring wealth to the next heirs; it also involves decisions on each person's health and life when they can no longer take care of themselves. An estate planning lawyer can help draft a living will, durable power of attorney, and healthcare proxy that outlines personal preferences in such circumstances. This ensures the necessary measures are taken without relying on court decisions when you are incapacitated.
Asset Protection Through Business Planning
An estate planning attorney can help you structure your business interests in a way that safeguards your assets. Through business planning, you can eliminate personal liability, protect company earnings, structure your assets to be tax-efficient, and protect assets' future sales.
In summary, an estate planning attorney plays a vital role in creating a legal framework that safeguards your assets from unnecessary taxes, creditors, and disputes. Once you pass away, estate planning comes into effect, ensuring your assets are distributed according to your wishes and your heirs are not overwhelmed by legal issues and complications. By taking into consideration the above points, estate planning can help make the transition of wealth between generations a seamless process.
Contact an estate planning lawyer near you to learn more.