At Zimmet Law Group, P.C., we understand just how hard you may have worked throughout your entire adult life to earn the assets you have now. Your primary goal should be to pass down these hard-earned assets to your loved beneficiaries at the time of your unfortunate passing. But your second goal should be preserving as many assets as possible so beneficiaries can inherit more of them. In other words, you do not want external forces to interfere and take these assets away from yourself and your loved ones. With that in mind, please read on to discover the importance of asset preservation strategies within your estate plan and how a seasoned New York City asset preservation attorney at Zimmet Law Group, P.C. can work to ensure your methods are well fleshed out.
Why are asset preservation strategies important for my estate plan?
Simply put, some events you experience in life are unpredictable or beyond your reasonable control. These events may simultaneously put your personal finances in a very vulnerable position. This is why you should regain as much control over the situation with an effective asset preservation strategy. Below are just some examples of life events that may benefit from asset preservation tools:
- You may have a civil lawsuit placed against you, in which the plaintiff is seeking your assets as their form of financial compensation.
- You or your spouse may initiate divorce proceedings against the other, in which your spouse is seeking ownership of many of your assets.
- You may endure a failed business venture, in which your personal assets may be put at risk to pay off your outstanding business debts.
- You may have a debt claim filed against you, in which an enforcement officer may seize your assets and apply the proceeds to the judgment.
In what ways can I preserve my assets in the face of a serious life event?
No matter which of the aforementioned serious life events you are experiencing or may experience in the future, there are strategies you may adopt within your estate plan to protect your assets at all costs.
Most commonly, you may place some of your assets into an irrevocable trust. In this way, you are no longer considered the owner of these assets; rather, the trust itself is the owner. So, you cannot access these assets and use them to pay off a judgment order, divorce order, business debts, or otherwise.
In another example, you may transfer your ownership rights over certain assets to your spouse’s name. However, this may not be the best strategy if you have a tinge of doubt that your marriage is not set to last indefinitely.
Lastly, you may buy into an umbrella insurance policy that protects your assets from personal injury claims. This is a particularly useful device if you are in a profession that is vulnerable to civil lawsuits (i.e., business owner, lawyer, doctor, etc).
There is a lot to consider before establishing your estate plan. To help you make the right considerations, please consult with a competent New York City estate planning attorney. Our team at Zimmet Law Group, P.C. will guide you toward the best decision.
