It may not be enough to simply leave your assets behind for your loved ones. This is because you never know what significant life event your loved one may encounter when you are no longer around to protect them. For one, there may be an incident in which your loved one gets sued. And in this suit, the assets in which they received from you may be threatened. Follow along to find out how estate planning might protect your assets from a lawsuit and how one of the proficient Butler County estate planning & probate attorneys at Heritage Law & Estate Planning, LLC can help you achieve this protection.
How might estate planning protect my assets from a lawsuit?
You may protect your assets from a future lawsuit by establishing a trust within your estate plan. However, not every type of trust offers lawsuit protection; so in this regard, you must mindfully proceed with your estate planning. Namely, for lawsuit protection, you may consider an irrevocable trust. This is because, when you establish this type of trust, you give up control of your assets. Technically, these assets are now overseen by a trustee. So since these assets are no longer under your legal ownership, it may be difficult for an individual who files a lawsuit against you to gain access to them.
This is why, in contrast, a revocable living trust may not offer the same protection. You essentially remain in control of this type of trust until your death. Therefore, an individual who wins a verdict against you may recover their financial payout via these assets. However, you may still opt for this type of trust if its other significant benefits pique your interest. For example, it may allow you to consolidate your assets and avoid probate court, among other things.
How else might estate planning protect my assets?
There are many other estate planning tools that you may utilize to protect your assets. Examples may include, but may not be limited to, the following:
- An irrevocable trust may protect your assets from being taken by creditors in bankruptcy proceedings.
- An asset protection trust may allow your assets to remain safe if you default on a debt and have to enter court proceedings.
- A special needs trust may allow your loved one to receive income without disqualifying them from certain government benefits.
- A bypass trust may allow you to leave your assets to your spouse without being subject to estate taxes.
- A charitable trust may protect your assets from being subject to estate taxes.
You must not do anything to jeopardize your estate plan. So please retain the services of one of the talented Butler County estate planning attorneys from Heritage Elder Law & Estate Planning, LLC as soon as you can.