Many professionals of substantial means are often aware of how liability for their professional actions can affect their personal lives. For instance, doctors who find themselves subject to malpractice suits not covered by, or in excess of, their malpractice insurance coverage can often benefit significantly from an asset protection strategy. You may head to http://www.lawbh.com/santa-barbara-asset-protection-attorney/, if you want to have more info on asset protection.
Further, though asset protection has often been associated with insulating professionals from liability associated with the their professional actions, the recent plummet in real estate values has made highly-leverage real estate investors acutely aware of the importance of the insulation an asset protection plan can provide and is now a common form of estate planning throughout the U.S.
Effects Of Asset Protection
Often the primary effect of asset protection is to place hurdles in the path of possible litigation in order to discourage such litigation. Moreover, by making assets unavailable to satisfy judgment claims, frivolous claims will often not be initiated and settlement of legitimate claims will often be necessitated.
In some cases, an asset protection plan can actually saddle a person's creditors with a substantial tax liability and no means by which to pay the liability. For example, a judge issues an order in favour of the creditor of a partner in a limited partnership. The order entitles the creditor to receive payments from the partnership that are due to the partner.
If the limited partnership is structured so that the managing partner has discretion as to if and when distributions are made and refuses to make a distribution to the partner, the IRS will often hold the creditor liable for the amount of the distribution that should have been made but was not.
Litigation after the death of a loved one is never easy. It often pits relatives against relatives and can be very stressful at that time. It is not something that you want to happen when your loved ones are already dealing with their loss. How can you make sure that your loved ones don't fight or become involved in litigation over your estate?
Following are some things that you can do in order to avoid litigation:
You must inform your heirs if you are making a distribution that is just not natural. A "natural" disposition is when you leave your estate to your heirs such as your children’s or grandchildren’s. Whereas an "unnatural" disposition is where you disinherit your natural heirs and leave your entire estate to someone you have known for 6 months, for example, or a caregiver, or other distant family members or charities. You can meet our attorneys and clear your queries regarding probate.
2) Have properly prepared legal documents.
Make sure that your estate planning documents are properly organized and prepared. So often, litigation arises because of wills or trusts that were not properly drafted in the first place. If you are concerned about someone contesting your will or trust, you certainly don't want to do it yourself or use a "trust mill" or online service.
3) Include "no contest" clauses in your estate planning documents.
Most of the wills and trusts have a "no contest" clause. It discourages disputes over a will or a trust because it provides that someone who contests certain provisions in your estate plan will not be entitled to an inheritance. Depending on where you live, some "no contest" clauses can be easily overcome.
All of us believe that an expense automatically reduces after retirement. However, soaring inflation and rising cost of medical care can leave less money in your pocket, forcing us to cut down on other essential expenses. With inflation i.e. running at 7-8%, our expenses will double every 9-10 years. Therefore, to remain afloat, we must ensure that our retirement corpus too doubles during this period. To know more about estate planning services, you may navigate to our official website.
Indeed, one of the greatest financial challenges for a financially secure life after retirement is making our savings keep pace with inflation. Only a good retirement plan can ensure that your savings maximize your potential income at a risk level you are comfortable with.
What is a Retirement Plan?
A Retirement Plan is a financial plan that takes into account our financial goals, current financial situation and risk profile to outline an investment strategy that ensures that you have sufficient income after you hang up your boots.
A comprehensive retirement plan is one that includes following factors:
1) It must contain your current age.
2) It should have correct knowledge about when you are going to retire.
3) It must consist of our current household expenditure.
4) It must determine the lifestyle that you desired after retirement.
5) It must contain information about yearly rise in cost or inflation.
6) It must have knowledge about the retirement corpus that we will need.
7) It must be aware of the type of investment that we need to make.
8) It should also contain our goals e.g. children's needs for higher education and marriage.