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.

Time To Take Steps Toward Asset Protection

I've recently run into a string of situations wherein Asset Protection Planning could have saved my clients or their families significant monies and countless worries and headaches.   The most important pair of words in that sentence is "could have,"  which, of course, begs the question "if?"

The answer to that "if" is simple, yet ignored by nearly everyone, every day.  That answer is "if they had put in place an asset protection plan."  Simply put, no plan, no protection.

Simple enough?

Of course, plans vary, and levels of protection vary along with those plans, but the  bottom line is that everyone can benefit from the tools and techniques of asset protection planning.

The fundamentals underscoring the need for asset protection are counterintuitive to the American Dream - we want ot own things.  Regrettably, everything you now own becomes a potential liability and a potential target. 

A statistic related to me by a colleague recently was that it is now estimated that 1 in 3 Americans can expect to be dragged into a lawsuit.  A staggering statistic - take a look at the person to your left, now take a look at the person to your right, one of you three are likley to be involved in at least one lawsuit.

Another staggering figure was related to me at a client's kitchen table.  As we discussed the husband's pending return home from a short stay at a local nursing home, talk turned to the potential costs if he was unable to return home.  The nursing home had quoted a rate of $7,480.00/month!  It is easy to see how a modest estate may leave nothing for children, grandchildren or other loved ones with these levels of expenses for care.

Whether the particular desire or need is to protect real estate for heirs or from creditors, to protect assets for beneficiaries in the event of a need for medical care, or to protect business or family assets from unforseen creditors, or simply to avoid the erosion of esate value imposed by the probate process, steps can be taken to secure your assets, and to secure peice of mind.

First step, of course, is to contact an asset protection attorney to discuss what's at risk and what can be done to protect it. 

It's time to take that step toward securing your assets, before it's another "could have" statistic. 

* Note that this information is provided as general information only and does not constitute legal advice with regard to any particular set of circumstances. As with any legal issue, consult with an experienced attorney if you have questions regarding matters related to the topics discussed in the blog or video. Davidson Law Office and Attorney Kevin Davidson do not provide legal advice outside of an attorney/client relationship memorialized by a written and signed contract for legal services.

Davidson Law Office, LLP is an Appleton, Wisconsin law firm with a focus on business, asset protection and estate planning. Serving clients throughout Wisconsin from the heart of the Fox River Valley, with offshore asset protection services, intertnational business corporations, domestic business structures, irrevocable trusts, family living trusts, life estates, powers of attorney, and complete estate and family security planning packages.  Attorney Kevin W. Davidson is a registered overseas agent for Anguilla B.W.I.'s Corporations Ministry.  Free consultations.

Should A Revocable Trust Be Part Of Your Estate Plan?

Revocable Trusts have become the central document in basic estate planning over the past several decades, all but replacing the Will. Yet they remain a bit of a mystery to many people, and sometimes we fear the unknown.

What is a Revocable Trust? What does it do? How does it Work? and, perhaps most importantly, Should a revocable trust be part of your estate plan?

I was recently interviewed for an article in e-zine TotallyHer.com regarding these very questions. The article provides a nice primer/overview of the revocable trust. Here's and excerpt:

"What does work is the advice of someone like Kevin W. Davidson, founding member of Davidson Law Office, LLP. In a recent interview, Kevin talked about using revocable trusts as part of your estate planning strategy.

A revocable trust, also known as "living trust", "intervivos trust", and "grantor trust", is essentially a contract between the person (or persons) setting up the trust and placing assets in it, who is referred to as the "grantor", and the person (or persons) who will be responsible for managing the trust, known as the "trustee". The contract spells out what assets belong to the trust, how the assets may be managed, and, ultimately, how the assets will be distributed at the termination of the trusts' purpose, which is usually to hold and protect assets for the benefit of some beneficiaries.

Kevin added this important reminder about trying to define a revocable trust: "The term 'revocable trust' is very generic, and there are dozens of special purpose trusts that fall under the revocable trust genre. Additionally, the specific provisions and clauses that are allowable within a trust are dictated to some extent by statute, and, accordingly, some of the details of how a trust is drafted varies from jurisdiction to jurisdiction."

You can read the complete article here.

Appleton Attorney Kevin Davidson is a Wisconsin wills, trusts, estate planning and asset protection lawyer with Davidson Law Office, LLP. Kevin provides personal attention and exceptional legal service to clients throughout the Greater Appleton and Fox River Valley areas and northeast Wisconsin.