Today we continue our discussion of Asset Protection with a brief analysis of the second and third Levels of Asset Protection.
Level 2 Asset Protection is basic estate planning that everyone should have. The types of entities or powers we are talking about here would include: wills, revocable living trusts, durable powers of attorney, heath care powers and special needs trusts. JGPC Law does not provide level two services but we’re happy to provide you with referrals to competent estate planners who specialize in this area of practice.
Level 3 Asset Protection involves taking advantage of exemptions & appropriate marital planning. Assets placed in exempt or protected status are protection from creditor attacks and are exempt in bankruptcy proceedings. Such exemptions might include use of homestead exemptions, insurance, annuities, pension plans and retirement plans. Some states also have special exemptions such as the home exemptions provided in Florida and Texas, or the self-settled trusts allowed in many states. Such planning might also involve transfer (commutation) of vulnerable community assets into the separate ownership of a non-working spouse.
Tomorrow we will conclude this discussion of Asset Protection with an explanation of the fourth and fifth Levels of Asset Protection.
If you have questions involving asset protection please post a comment below, or contact JGPC business attorney Jim Gulseth:
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