Total Asset Protection
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The need for total asset protection is an important priority for many families and may be necessary due to a number of factors including medical expenses, lawsuits, and taxes. Working for a lifetime to obtain valuable assets only to see those assets eaten away can be very frustrating. Many property owners understandably wish to leave an estate behind for their children. But leaving these estates behind is becoming more and more difficult. People are living longer and incurring hefty health care expenses at the end of life. These expenses can completely obliterate an estate in a very short period of time. The need for trained financial professionals to provide advice and guidance for seekers of total asset protection is great. In an increasingly litigious society, anyone can fall victim to lawsuits that can strip them of valuable money and property. Many professions are more susceptible to lawsuits than others. For example, medical and legal professionals may face expensive lawsuits and desire to shelter their savings and belongings. Developing a solid total asset protection strategy is crucial for anyone who believes that their financial well being may be in danger.
Some of the tools that could be utilized may include wills, family trusts, limited liability companies, and limited partnerships. Since every circumstance is different, the skills of a legal or financial advisor are called for. This professional will be able to assess each client's unique situation and provide advice that will best fit the need of the individual client. Protection from lawsuits as well as strategies for limiting the amount of money that goes to pay taxes are some of the services that these professionals offer. Documentation preparation is another helpful service that will generally be offered. In addition, a good representative in total asset protection issues will also be able to explain what is happening to the client each step of the way. Fees for these services can vary, but could amount to hundreds of dollars per hour. But clients may feel that the money that is preserved through the efforts of a skilled professional more than earns such fees.
For many clients, it is not necessarily the just earnings that they have accumulated over a lifetime that are at stake. Frequently, total asset protection will include looking out for the earnings that clients are currently in the process of earning as well as any earnings that they will realize in the future. A successful lawsuit could not only wipe out assets that the client owns in the present, but could create a debt that the earner will have to pay on for years in the future. No one wants to be deprived of the opportunity to distribute their wealth in whatever way they see fit. Some families make the mistake of thinking that a sound will is all that is needed for total asset protection. In most cases, this is not true. An estate plan is important for anyone who wants to make sure that their belongings and earnings are handled in the way that they choose, both during the client's lifetime and after their death. There are a number of elements that will make up an effective estate plan. These elements may include a revocable living trust, a durable power of attorney for both finance and health care issues, and a living will.
A health care durable power of attorney, or POA, grants a person of the client's choosing the authority to make decisions regarding medical care. A separate document may be needed to grant authority to a chosen representative to make decisions in financial matters for the client. Living wills give the client the opportunity to explain ahead of time the kind of actions they wish to have taken regarding life support if such an unfortunate situation arises. If the only method of total asset protection that an individual has prepared is a basic will, a number of variables can impact whether or not the client's true wishes will be carried out upon their death. Heirs and others who believe that part of the estate belongs to them may contest the will, tying things up for many years. Taxes and court costs can eat away at an estate, eventually leaving less and less behind for those that the client wishes to benefit.
A major factor of total asset protection is a provision for the costs of long term care. Making adequate plans for the retirement years is incomplete if the possibility of spending the end of life in a long term care facility is not considered. These cost of such facilities can quickly topple an estate that clients have taken a lifetime to build up. Long term care insurance may be the answer if a family has had the forethought to purchase such a policy before the health of the individual has deteriorated to the point where such policies are not available. Even if it is possible to purchase long term care insurance, such policies can be very expensive. There are other options that are available to protect estates from the financial ravages of serious health care needs. Financial professionals can usually supply answers to families that are seeking to protect the estate of an aging loved one. The Bible records words of praise from those who have trusted God since they were young. "For thou art my hope, O Lord God: thou art my trust from my youth." (Psalm 71:5)
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