Generational Asset Protection Planning

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Generational Asset Protection Planning

life insurance, family protectionGenerational assets are accumulated wealth that can be passed down to your family after you die. When you’re ready to work with Chicago estate planning attorneys like Anthony J. Madonia & Associates Ltd., you can include generational assets in your asset protection estate planning.

How Generational Asset Protection Works

Asset protection works by making sure you transfer specific assets into a trust. For example, if you have a rental property, you’ll want to put that into a trust. Generally, money in an IRA or 401(k) is already safe, but if you’re profiting from an asset like a rental property, it’s time to enter that into a trust. That way, if someone sues you for falling on your property, your business will shield you from any expenses or liabilities that your insurance did not cover.

How To Set Up a Generational Asset Protection Plan

Asset protection and estate planning consist of a few phases. You must have a separate business bank account for incoming and outgoing expenses.

First, you’ll want to catalog what you have and bring all your asset paperwork to your trusted estate planning attorneys in Chicago. Then, you need to protect your assets – because if you have wealth, you could be the target of lawsuits, even from your state or the federal government.

Once you’ve set up asset protection and estate planning with your Chicago estate planning attorneys, you should review it quarterly or annually, depending on your life circumstances. For instance, if you have expanded your family or divorced. These are changes that should be accounted for as you protect your assets and preserve generational wealth for your children.

Your estate planning attorneys in Chicago will also ensure that your insurance covers you in the asset protection planning process. This means your business insurance must protect you as described above, also called the “corporate veil.” You do not want a lawsuit allowing someone to go after your personal property.

Anthony J. Madonia & Associates Ltd. Can Help Protect Your Assets

Aside from the things mentioned above, planning to protect your asset is best done with an estate planning attorney. They help you set your trust. There are multiple types of trusts. This can be complicated, but if your wealth is considerable, you should discuss this with your estate planning attorneys in Chicago.

You have options in creating an asset protection trust as part of your asset protection planning process. For example, you could make an offshore or domestic asset protection trust. Nevis or the Cook Islands are popular areas for offshore accounts, but if you don’t want your money out of the country, it’s possible to set up domestic protection trusts.

If a creditor comes after you and you set up the trust after, it looks like you were trying to simply hide your money from someone who may be owed. Since your money wasn’t in a trust when you were solicited for payment, there’s a big chance you’ll still owe someone if they win a lawsuit or the creditor has a valid claim.

As you can see, protecting your assets is vital, but the path is different for every person. If you need help with asset protection planning and protecting generational wealth and trusts, it’s time to call Anthony J. Madonia & Associates Ltd. We will help you figure out the best asset protection and estate planning options for you. Let’s work together to make sure your assets are protected.