financialsense.com / FS STAFF / 02/17/2017
With so many different ins and outs, estate planning — especially for individuals who have greater exposure to credit or litigation risk, or those with high net-worth — can be a daunting task.
This time on our Lifetime Income series, we spoke with Elizabeth Morgan, an estate planning professional and specialist in taxation and trusts at Elizabeth Morgan and Associates, about how individuals can implement different investment vehicles to protect their assets in retirement and inheritance situations.
Who Needs Asset Protection?
In Morgan’s view, everyone can benefit from asset protection to some degree.
“If the value of your assets are capable of being protected in any of the other statutory-exempt categories — retirement plans, life insurance, etc. — then you probably don’t need an asset protection trust,” she said. “But if your assets exceed the exemption level in your particular state — and in some states, that can be fairly low — using an asset protection trust makes good sense.”
For investors concerned about future creditors, establishing a trust in a jurisdiction where, despite their status as the grantor to the trust, their assets would be protected can be hugely beneficial.