Why Asset Protection is a Key Part of Estate Planning in New Jersey
You worked hard for your life savings. A key part of estate planning is ensuring that you have the capacity to cover living expenses, maintain your quality of life, and provide the most to future generations. Asset protection is one of the most important—and often underappreciated—aspects of estate planning. Without a proper asset protection strategy, your hard-earned wealth could be at risk. Here, our New Jersey estate planning lawyer explains why asset protection is so important.
Asset Protection: The Basics
As defined by Investopedia, asset protection is a term used to describe a collection of “strategies to guard one’s wealth.” Described another way, asset protection is about using all available financial planning strategies and legal tools to protect your money and property against creditor claims, lawsuits, avoidable taxes, and other costs. Effective asset protection planning can help ensure that your wealth remains in your control. It can minimize the exposure to common financial risks.
Why it Matters: You Can Preserve Your Wealth for Yourself, Your Family, and Future
Why is asset protection so important for people and families in New Jersey? It is the best way to protect your financial security and ensure that assets can be passed down to your heirs in accordance with your wishes. Here are two key reasons to focus on asset protection:
- Creditor Claim/Lawsuit Protection: With litigation becoming increasingly common, protecting your assets from potential lawsuits is crucial. The right asset protection strategy can create a legal barrier that keeps money/property away from claims.
- Maintaining Family Wealth: Proper asset protection strategies ensure that your wealth is preserved for future generations. It helps prevent significant losses due to claims and it can help you keep loved ones financially stable long after you are gone.
Long-Term Care Costs Pose One of the Biggest Threat to Your Wealth
Do you really have to worry about creditor claims when developing an estate plan? For the vast majority of people, the answer is a resounding “yes.” The primary reason is that potential future long-term care costs pose a truly enormous risk. In New Jersey, the cost of long-term care facilities can be exorbitant. A private room in a nursing home can easily run over $100,000 per year. A seemingly modest period of long-term care needs can deplete savings and assets rapidly if not planned for adequately. Asset protection becomes crucial as it helps secure your resources to cover such care without compromising your family’s financial future. A top-tier New Jersey estate planning lawyer can help you put the right strategy in place for your financial circumstances.
Contact Our New Jersey Asset Protection Attorney Today
At Poulos LoPiccolo PC, our New Jersey asset protection attorney provides solutions-focused guidance and support to clients. If you have any questions about protecting your assets as part of your estate plan, we are here as a resource that you can trust. Contact us today to arrange a fully confidential, no obligation initial consultation.
Source:
investopedia.com/terms/a/asset-protection.asp
