Wednesday, September 12, 2012

Don't Give It Away To Just Anyone - Asset Protection Must Be Properly Planned.

"We've already titled our home to our kids, so its protected"

This is probably the most alarming thing I hear from potential clients when we discuss asset protection in the context of estate planning.  

For most folks, the "protection" they are talking about can be summed up in this oft repeated phrase: "we want to make sure our kids get the home, rather than losing it to the nursing home."

Unfortunately, the simple act of gifting directly merely shifts the risk from one potential loss to others - and can have extremely adverse consequences if the wrong circumstances should arise.

Consider that if you have gifted your home away, you no longer own it, and whoever you gifted it to does, in fact, own it.  Now, I would not suggest that your children are likely to have a change of heart and turn you out on the street because they now own your home, but their creditors could and would throw you out without a second thought.
If Jr. ends up getting sued for big bucks, guess who's home may be up for grabs for the judgment creditor?

With proper planning, we can address the risk on all sides, so you have protection in place for you and your family, rather than just blinders blocking your view of other risks.

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