Wealth preservation, or asset protection, is a broad term describing the process in which individuals or entities attempt to protect assets from all conceivable eventualities. To plan appropriately, however, the individual or entity must first identify the most immediate and/or relevant “threats” to the susceptible asset. Potential threats vary, but may include taxes, bankruptcy, creditor claims, lawsuits, divorce, market volatility and lack of diversification, among others. Asset protection requires identification of the affected person or entity, the identification of the potential creditor or claimant, the nature of the potential claim and the nature of the asset for which protection is sought. Strategies also vary, but may include exemption classifications, entity formation, trust ownership, asset titling and sound financial planning/management — all of which must be entered into cautiously with an eye toward state and federal fraudulent transfer laws. Consult experienced counsel prior to acting.
July 25, 2023
Family Business Succession Planning: Transfer of Farmland, Buildings, and Equipment to the Next Generation
by MacGregor J. Brillhart