Your asset protection plan is an important component of your overall wealth management plan. It is designed to ensure that the wealth you have accumulated remains yours. It is built to protect your assets from suits and creditors. However, before you hire an attorney in Moab Utah to put together a complicated asset protection structure make sure you have a sound financial and estate plan in place that will compliment a smart protection structure. A well thought out financial and estate plan can be rendered worthless if your assets are taken by a creditor. Likewise a sound financial and estate plan can strengthen your protection plan.
Let’s first start with determining what is asset protection planning and what it is not.
Asset protection planning is a process of using legal methods to organize your affairs, assets and business structures at a time when there are no legal actions pending, threatened, or expected, with the goals of:
1. Protecting your assets against loss in the event of any given peril; and
2. Reducing the likelihood of being the target of a law suit or other legal action which would require you to spend time and money, and put your emotional well-being at risk.
It is also important to understand what legitimate asset protection is not.
1. Hiding Assets / Secrecy. A proper protection plan will never rely on secrecy of hiding your assets. Relying on a plan that will require you to do anything but be 100% honest about what your assets are and the planning you have engaged in is not real planning and may have serious negative implications.
2. Defrauding Existing Creditors. The maximum benefit from asset protection planning is achieved if there are currently no lawsuits pending, threatened, or expected. This is not to say that you have no options once you are sued, however, if a creditor is on the horizon, your planning choices are significantly limited.
3. Evading Payment of Income Taxes. Many people look to foreign asset protection planning in hopes of avoiding paying income taxes. A proper foreign protection structure will be income tax neutral.
In short, legitimate asset protection planning is based on sound legal and financial principals and does not involve creating complex plans simply for complexity sake. A good plan will be user friendly for person doing the planning and their advisors who will be helping them properly maintain the plan over time. Finally, as mentioned above, a proper protection plan will never be based on a person having to hide the truth about what the plan is and why they put it in place.
The benefits of a good asset protection plan include:
1. Removing the economic incentive to sue thereby deterring litigation in the first place;
2. Increasing the ability to force early and affordable settlements;
3. Placing the power back in your hands despite a plaintiff’s ability to fund expensive litigation; and
4. Increasing your options in the face of numerous possible perils.
In closing asset protection planning should be thought of as a strategy that:
1. Covers all litigation risks;
2. Has low annual premiums and no deductibles; and
3. Contains few or no exceptions to coverage.
Real Estate Appraisal Process
When you talk of home buying or selling, one of the vital steps is the property appraisal. This is one way of establishing the property value of a house and its corresponding selling price to position itself in the real estate market. Applying a home mortgage or simply getting involved in any lending procedure, you are required to do an appraisal of your house if you would use it as collateral. This will ensure the lender that you have the capacity to pay off the amount that you owe. If you are new to home selling or buying, you might want to know how this real estate appraisal process is done. Reading the rest of the paragraphs will tell you relevant details of the said procedure as well as giving you other related facts which can enlighten you about this.
In appraising a property, you will be given related facts about the subject property as well as the comparisons of other similar houses. Then you will know the assessment of the actual real estate market of the place where the subject property is situated. The rough estimate of the sales turnover that occurs in such place will also be provided for additional data. Facts that the appraiser has about the house which can greatly affect the market value of the house are all gathered and presented to the home buyer. Existing damages and other related issues which the house is currently dealing with. The last one would be the type of neighborhood that the home has as well as the potential development projects for such community.
All these data are gathered into one and collaborated to come up with reasonable figures for the subject property. The amount stated is very important in getting the lender’s approval as well as influencing the status of your mortgage plan. This is sometimes used to measure your financial ability to settle loans and other payable you have. Since every house is unique, the person who will be appraising the subject property will have to make the necessary adjustments to end up with the proper amount for the actual condition of the house.
On the other hand, if you have plans on selling your home, home appraisal is very important. This will help you determine the right market value for your house and will tell you if you need to improve it or not. If you wish to have a higher selling price, then you must know your appraised value first so you will determine how far you can go for the home renovation project. Therefore, real estate appraisal process should not be taken for granted by either the home seller or home buyer. This is an important procedure both in home buying and selling.
Moab Utah Estate Planning Lawyers
As defined under Moab Utah law, estate planning is planning the management and the disposition of your assets while you are alive and after your death. It also includes planning for your healthcare in case you become incapable of taking care of yourself. With the help of Moab Utah estate planning lawyer, you can rest assured that your life’s work will be well taken care of.
In Moab Utah, if you die without a will, you may not have proper representation, and your family might be left fighting over your assets. If this is the case, Moab Utah will decide the successor to your property. It is best to hire a lawyer to get your affairs in order before it is too late. A good lawyer can interpret the maze of laws on property rights, taxes, probate and trusts.
Moab Utah estate planning lawyers can help you decide how to transfer property and resolve other financial and personal matters including retirement funding and tax planning. Most importantly, they can guide you through the process of making a will. They can help you set up a trust naming who will hold your property until your death and disperse the property according to your will. Before hiring an estate-planning lawyer, you should verify his/her expertise and credentials because estate planning is a very important process in your life. To find an estate-planning lawyer, you can check with the State Bar Association of Utah, or you can search on the Internet. There are a variety of links and resources about lawyers and law firms in Utah.
What An Estate Planning Law Firm Can Do For You
Most folks know that a last will and testament is the centerpiece of any solid estate plan — but it isn’t the only piece. The are many other steps you should take to ensure that your family is taken care of after your passing. Failure to do so could put your legacy in jeopardy and leave a major mess for those you leave behind. With that in mind, here’s what you can expect from estate planning services.
It might not be able to pass on your memories, but a well-thought-out arrangement can reflect your hopes and values. Although its overarching aim is to take care of your family after you’re gone, there are other, more specific goals an estate planning law firm can help you achieve, including:
• Minimizing confusion and delay during the settlement of your estate
• Helping your heirs avoid paying more than they owe in taxes on inherited assets
• Managing your legal and financial affairs should you become disabled or incapacitated
• Guarding your assets against the rising costs of long-term medical care
• Making sure your wishes are followed with regard to medical decisions and care should you be unable to make those decisions for yourself
• Providing for your loved ones according to your wishes after your death
• Overseeing charitable donations
• Working with the executor to manage the distribution of your assets
One of the most common mistakes people make is failure to make short-term arrangements. Death seems like something that will happen in decades. As such, some people are not prepared when an unexpected accident results in disability or death. Of course, the expenses associated with either event could alter any long-term financial goals. That is why estate attorneys must always consider both short and long-term options. They may advise purchasing life and long-term care insurance. These policies will protect your assets in the unlikely event that you are cut down in the prime of your life.
Another aim of estate planning is to help your heirs avoid unnecessary taxes. Although transferring wealth in American almost always involves assorted charges and fees, there are ways to limit them. Trusts and annual gifting, for example, are common strategies an estate planning law firm may employ to avoid unnecessary expenses.
Although they don’t manage money, attorneys often work closely with their clients’ financial advisers. For obvious reasons, the attorney needs to know the size of the estate before he can recommend short and long-term objectives. These plans may and often do change based on input from financial experts. If, for example, the client loses one-quarter of his assets in a stock market collapse, the attorney would have to make the necessary adjustments in the short-term. An estate planning law firm can help you prepare for the inevitable with a strategy that ensures your legacy.
Understanding Estate Planning and Trusts – Ways to Protect Your Assets and Your Family
Estate planning and trusts is a step that is not just for the wealthy anymore. If you are an individual that has worked hard and saved for your retirement and plan to live out your days in your home and in your community, you are not alone. Baby boomers have spoken loud and clear. That is what they want. They also plan to leave their hard earned money to their children. Think again, we are living longer and healthier than ever before. The care we are going to need is going to require finances and we are going to have to pay for it.
Medicare and health insurance does not pay for the services that an aging elderly person needs. Most services are considered custodial or unskilled needs.
There are many family members that give up their jobs and provide care for an aging family member. Sometimes, moving their entire family from across the country and into what was once the family home. Many make this move to help an aging family member that absolutely refuses to move from the old neighborhood. In this economy today, it is not uncommon for the family to expect to inherit the family home in return for their care giving duties.
The problem is, that sometimes the stress and care of taking care of another takes its toll. Many caregivers health suffers from not paying attention to themselves and they end up ill and unable to care for their family member or in the hospital. Or the unthinkable happens and the family member they are providing care for becomes unmanageable. So a time comes when money has to come from out of pocket or private pay. Often times, the aging family member ends up in assisted living or a nursing home. This brings us back to the home everyone is living in. Because the home is in the aging family member s name and there are rules, there is a strong possibility the house will be used to pay for those services. The family home, at some time will be lost.
So it is important that the aging population take advantage of the laws that have been put in place to help them protect their assets, their home, and their savings, and, for some their business. Yes, there are laws that are on the books that are available to us that can save us lots of money and help us to pass those savings on to our children or use those savings for other purposes. There are many different interpretations of the Medicaid laws, which is a federal program that is run by each state. So it is important that you develop an estate planning checklist and educate yourself on the inheritance tax laws in your area. The best way to do that is to do some simple research and learn some of the terms and understand what it is you want to accomplish before you get started. It is important to plan for your future care needs before you need them.
Here are a few tips that may help to get you started on your way.
Understand the difference between Medicare, Medicaid and Medigap policies. If you are a Veteran, you really want to know what benefits may be available to you and your spouse. Part of estate planning and trusts is more than just having a will in place. It is so much more. It really is a planning process that includes a will and a trust and several other legal documents that could save you thousands of dollars. Do not wait until it is too late to take action. Take a proactive approach and make sure that you take care of your spouse or children, if that is a concern for you. Do not take anything for granted. Estate planning and trusts are a form of Medicaid asset protection planning information in disguise.
Free Initial Consultation with Lawyer
It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506