When you think about growing older, something you should think about is what you’ll do if you have debts. You want to protect your assets from creditors because if you suddenly fall ill or can’t work, you may find that you fall behind on what you owe. Those debts could end up resulting in collections actions, and you could potentially lose your assets.
Even following your death, creditors have the option to pursue payments that they’re owed. To be sure you can protect your assets, you’ll want to use these three estate planning techniques.
Use trusts to protect your assets
One of the possible ways to protect what you own is to place those items into an irrevocable trust. Once there, the assets are no longer in your name and are generally protected against collection activities.
Transfer assets to others during your lifetime
To reduce your estate’s value and protect assets you want to pass on to beneficiaries, consider gifting items during your lifetime. Plan for gifting a specific amount each year, so you can avoid taxation and help protect the items you have worked hard for.
Use a limited liability company to protect your assets
Finally, you can try using a limited liability company (LLC) to protect your assets. When you transfer assets into the LLC’s name, creditors have very limited rights to get access to them. There are some specific rules to follow with this that you should discuss with your attorney.
These are three tips that can help you protect your assets. You’ve worked hard for them, so make sure you secure them, too.