Scranton Asset Protection Lawyer
You put in the work to earn them, but what have you done to protect your hard-earned assets? With decades of hard-earned paychecks behind you, the last thing you want is for the unexpected to bleed your bank account dry, or for federal or state taxes to suck up hundreds of thousands or millions of dollars of your estate that should have been passed down to your heirs. A Scranton asset protection lawyer with Haggerty Hinton & Cosgrove LLP can help ensure that your finances are protected in the event of a disaster, and that your estate is passed down successfully and smoothly to your heirs with minimal estate taxes.
The number one way to protect your estate and bypass probate is to create a trust. Depending on the trust, it can protect your assets from future creditors; place your considerable estate in the hands of a trustee for your grandchildren and therefore bypass estate tax; give your assets to a special needs child so that they have resources to live on when you are gone while also keeping them eligible for Social Security Disability or Medicaid; or carry out one of dozens of other asset protection strategies. There are various types of trusts to choose from, and remembering what trust does what can get confusing quickly. An attorney can explain the purpose and utility of each trust to you so that you are prepared to make the best decision.
Family Limited Partnership
A Family Limited Partnership (FLP) allows family members to pool their money together for business ventures. For example, if an individual wanted to start a small business, he could ask his siblings or parents to put in money, whose return would correspond to how much they invested. Another purpose of an FLP is for passing down wealth, tax-free using the give tax exemption. Family members can put money into the FLP to give to other family members. For an individual, the gift tax exclusion is $15,000 for 2019, according to the IRS. For couples, it is $30,000 per year. Additionally, the party who places these funds into the FLP will not be responsible for paying taxes on the returns, and has authority to ensure that funds are not used improperly or mismanaged.
Other Types of Asset Protection an Attorney Can Assist You With
Other useful forms of asset protection planning may include one or more of the following:
- Medicaid or Long-Term Healthcare Planning;
- Life Insurance;
- Prenuptial or postnuptial agreements; and
- Creation of a Limited Liability Corporation.
Contact Haggerty Hinton & Cosgrove LLP Today
Sixty percent of Americans have no will or estate plan at all, according to AARP. This opens them and/or their heirs up to financial disaster should they pass away unexpectedly before they have taken proper measures to protect their wealth. If you do not have a will, put off creating a trust, or have not thought about how your estate will be passed down, call or contact the Scranton asset protection attorneys of Haggerty Hinton & Cosgrove LLP today at 570-354-5205.