Asset Protection Legal Advice That Supports Your Estate Planning Goals
Asset protection is an astute legal and financial strategy — methods of saving people money through forward-looking estate documents and with sound tax advice.
As your estate planning attorney, Jane K. Penhaligen takes taxation of the transfer of assets and protection from liability into consideration when creating an estate plan and, wherever possible, implements practical asset protection devices. She has more than 20 years of experience in this area of law.
Consider All Your Options For Safeguarding Your Assets
Have you considered an irrevocable trust or business entities for the protection of your assets?
For example, the owner or owners of the home can transfer title of the home to an irrevocable trust they create. Since the home is owned by the trust, they no longer have legal title, so creditors cannot reach it. Generally, the beneficiaries of the trust are the original owner’s children. The term of the trust is the life span of the original owner. This type of transfer is called a Qualified Personal Residence Trust which in addition to protecting the home from liabilities of the transferor, can potentially reduce estate taxes.
Another example of asset protection that can be used is the creation of business entities, such as a limited liability company (LLC). If one of the members becomes liable for any reason, the only remedy a creditor seeking to attach assets has is through a charging order against the assets of the debtor member only. An LLC can have provisions for what is often referred to as a “poison pill” technique. This is when the LLC operating agreement provides that if a creditor is trying to recover against a member’s interest, the other members may redeem the debtor’s interest for one dollar.
Learn More By Talking With Our Lawyer Today
If you want asset protection for a residence or a vacation home, and a reduction in the value transferred to heirs, a QPRT may be a useful vehicle for you – or if you are interested in the protection a business entity can provide. The Law Office Of Jane K. Penhaligen in Pleasant Hill can provide these services. Contact us today by calling 925-464-1598 or sending an email message. Your half-hour initial consultation with our lawyer is free.