Advanced Estate Planning Attorney In The West Valley & Beverly Hills

You have worked hard your whole life to provide your family with everything they need, and that includes making sure they will be taken care of when you are gone. However, there may be a gaping hole in your estate plan—one that the IRS or unscrupulous predators can use to drain your loved ones’ inheritances. Third-parties often file claims against people of high net worth, and these lawsuits have the potential to wipe out your assets during or after your lifetime—and the failure to build the next level of protection can result in tremendous financial and emotional suffering for you and your loved ones.

At the Estate Planning & Elder Law Firm, we have handled a significant number of trusts after our clients have passed away, and we have learned a big lesson that applies to many large estates: your living trust is not enough. Our asset protection services can ensure that your wealth is protected from legal claims, divorce settlements, creditor actions, and other judgments, all while working to minimize income tax and keep inheritances intact. Call us today to schedule your initial consult with California asset protection attorney Richard M. Seff.

What Is Asset Protection?

Asset protection is a collection of legal actions that prevent creditors, divorcing spouses, and other parties from claiming your assets. These actions serve many different purposes, including deterring future lawsuits, minimizing the amount of potential assets available in a claim, and giving you more power in settlement negotiations. When done correctly, asset protection can make it extremely difficult for someone to take your assets—even if a suit ends in a judgment against you.

The goals of asset protection vary from person to person, but often include:

• Protecting savings, investments, real estate, future income, and other valuable assets from lawsuits
• Selecting the right person with the best leadership and management skills to manage real estate and other investments when you are no longer able
• Prevent loved ones from fighting with the selected manager about the management of your real estate and other investments after your death
• Stop disgruntled or greedy beneficiaries from forcing “fire sales” of your assets
• Protecting loved ones’ inheritances from the claims of spouses, creditors, lawsuits, and the IRS

Why Does My Estate Plan Need Asset Protection?

Asset protection is vital in minimizing the amount you will pay if someone makes a claim against your estate. How much the settlement will be depends on the amount that can legally be accessed and the strengths and weaknesses of each side’s argument. Since creditor actions almost always settle before going to court, asset protection allows you to make your holdings less available, expanding your bargaining power. As a result, these important planning options could wind up saving you and your loved ones millions of dollars. We offer many different asset protection options, including:

Limited Liability Company (“LLC”)

• The creation of an LLC allows each of your business holdings to remain separate, and for your business debts and liabilities to remain separate from your personal liability. Assets are “owned” by the LLC and any claims against them cannot seek additional payment from you or your other assets.

Irrevocable Trusts

• When assets are placed in a properly structured irrevocable trust, they are removed from your personal estate, effectively shielding them from creditors and legal claims as well as reduce or eliminate any potential estate tax. This makes irrevocable trusts an essential tool for those seeking robust asset protection and estate tax planning.

Combining LLCs and Irrevocable Trusts

• For enhanced asset protection, we often use both LLCs and Irrevocable Trusts in conjunction. This is an invaluable strategy when planning to avoid a property tax reassessment when children inherit real property (and don't want to sell). Learn more about Prop 19 Planning.

Here’s a brief look at how this combination works:

• Layered Protection – Placing an LLC within an irrevocable trust adds an extra layer of protection. The LLC shields personal assets from business liabilities, while the irrevocable trust shields the LLC’s assets from personal liabilities.
• Estate Planning Effciency – This combination ensures that the business can continue to operate smoothly even if you face personal financial difficulties. It also
• facilitates the transfer of business ownership and assets to beneficiaries with minimal tax implications.

LLCs and Irrevocable Trusts are powerful tools in the realm of asset protection and estate tax planning. By understanding and utilizing these structures, you can significantly mitigate risks and safeguard your wealth for future generations. Always consult with legal professionals to determine the best asset protection strategy tailored to your unique circumstances.