Asset Protection Planning

Asset protection planning means taking the necessary steps towards protecting and planning your estate. The right decisions must be taken to safeguard wealth and even more so, one must be aware of the mechanisms that can be put in place to ensure that estate is properly administered in the event of death.

For individual families, wills are among the most common asset protection planning tools that are used. Others asset protection planning tools include trusts and foundations that are administered by a designated trustee or council to ensure that the trust or foundation estate is secure.

In asset protection planning, trusts and foundations assist estate planning and protection, and create a two in one solution. Wills can be written and put in trusts for additional protection and privacy. Wills are public documents and to prevent private affairs from being exposed to the public, trusts and foundations are superior options.

Asset protection planning is equally beneficial to corporations, especially those that are established with continuity and firm control in mind. To control the property and or assets of a corporation, an asset protection plan can be put in place to ensure that management does not fall in the hands of anyone.

This makes it possible for the corporation’s owners to ensure that the business’ wealth remains with a family, a brotherhood or specific group of individuals. Because offshore protection plans are generally governed by letters of wishes, such as deeds (trusts) and charters (foundations) which are legally binding, it is mandatory that the affairs of these entities comply. Any act that vitiates the objectives or wishes of these entities is considered a breach and becomes subject to legal proceedings.

The fact that lawsuits, natural or manmade disasters are also unforeseen makes it necessary for businesses to seriously consider asset protection planning. Wealth is not always easily recovered and should therefore be protected in one way or the other. For businesses, asset protection plans help provide a certain degree of indemnity by ensuring that shareholders and other interested parties are compensated in the event of major loss or failure.

People who wish to ensure that their children or close relatives, as well as social causes they wish to support financially, planning does not only protect assets but ensures that personal wishes are fulfilled or carried through. Simply thinking of asset protection planning is not enough. Life comes with many surprises and as a result it is never too late or too early to plan.

Regardless the unfortunate stories of sibling warfare over property after the death of parents, many families continue to leave their wealth up to chance. Relying on friends, siblings or the maturity of children to allocate property following the death of the owner is not always a wise decision, and to a large degree can even be reckless. Legal asset protection planning tools are best resorted to.

One must be mindful that promises are not always kept and that reaching fair terms could end up being resolved by the court or may never happen. In the end, either someone or everyone suffers. Sound asset protection planning schemes that are designed to work in the best interests of the beneficiaries help avoid these situations and ensures that hard work was not in vain.

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