The American Bar Association published at the end of 2017 that there were 1.3 million lawyers in the United States. That is one lawyer for every 300 people, the most per capita of any country in the world. Now there are a few more. In today’s litigious society, many of us may be concerned about keeping that for which we have worked so hard.
What are some of the tools that you can use to protect and preserve your assets during your lifetime and maybe for your heirs also? There are simple and complex strategies.
- Liability insurance for your home, cars, boats, and RVs are the basics. Also, do not forget to buy umbrella insurance that ideally will cover your net worth.
- You can protect your assets by putting them into Family Limited Partnerships and Limited Liability Companies.
- Assets can be protected by pre-marital or post-marital agreements.
- Retirement plan assets that are under ERISA are not subject to claims of creditors.
- IRAs are exempt from creditors in certain states or up to certain limits.
- Life insurance is also protected from creditors.
- Gifting assets can offer protection for your heirs. The best protection is in giving up complete control of those assets, but most of us are not willing or able to do that.