Fountain Hills Asset Protection Planning Attorney
Planning is an important step in the estate planning process, regardless of age, health, and wealth.
Building wealth takes time, and protecting it should be an essential part of your long-term financial plan. Whether you’ve accumulated investment accounts, own real estate, operate a business, or want to preserve assets for your family, asset protection planning can help reduce financial risk and provide greater peace of mind.
Asset protection planning involves implementing legal strategies that help safeguard your assets from potential creditors, lawsuits, and other financial liabilities. By taking action before legal issues arise, you can create stronger protections while supporting your overall estate planning and financial objectives.
Many Fountain Hills residents have spent years building their wealth through successful careers, business ownership, investments, and retirement planning. As your financial portfolio grows, it’s important to have legal strategies in place that help protect what you’ve worked hard to achieve while preparing for the future.
Depending on your individual circumstances, asset protection planning may include trusts, limited liability companies (LLCs), corporations, family limited partnerships, and other legal entities that help separate personal assets from potential liabilities. When paired with appropriate insurance coverage, these tools can provide multiple layers of financial protection and help preserve your wealth.
At Kierman Law, we help individuals, families, retirees, and business owners throughout Fountain Hills develop customized asset protection plans designed around their unique goals and financial circumstances. If you’re looking for an experienced Fountain Hills asset protection attorney, contact Kierman Law to schedule a consultation and learn how proactive planning can help protect your assets for years to come.
Asset Protection Strategies
| Strategy | Beneficiary? | When are the Assets Protected? | Features of Strategy |
| Insurance (property, auto, business, etc.) | Client | During Client’s Lifetime | First line of defense against liability. In order to be effective, ensure that policy limits are in line with current assets and net worth. Also, confirm that coverage is still adequate. |
| Tenants by Entirety | Client | During Client’s Lifetime | In applicable states, this type of ownership between a married couple protects the property from the creditors of one of the spouses. Depending upon your state law, this may be limited to real property. |
| Investing in Retirement Accounts | Client | During Client’s Lifetime | 401(k)s and IRAs (excluding inherited IRAs) are protected from creditors in bankruptcy (with certain limitations). In addition to protecting these assets, you are also growing your retirement fund. |
| Domestic Asset Protection Trust (DAPT) | Client | During Client’s Lifetime | Allows you to fund the trust with your own property, maintain an interest in the trust as a beneficiary, and protect the trust’s assets from your creditors. Only allowed in states with DAPT statutes. |
| Spousal Lifetime Access Trust (SLAT) | Spouse | During Client’s Lifetime | A trust established for the benefit of your spouse. Should you be sued, these funds are not available to creditors and can be used by your spouse to support the family. |
| Lifetime Qualified Terminal Interest Property (QTIP) Trust | Spouse | During Client’s Lifetime and At Client’s Death | During the less wealthy spouse’s lifetime, they will receive all income and possibly the principal. If the less wealthy spouse dies first, assets will be included in their estate, making use of their estate tax exemption. Funds may continue for the benefit of the surviving spouse and distributed to the wealthier spouse’s chosen heirs. |
| Discretionary Trust | Spouse and/or Children | During Client’s Lifetime and At Client’s Death | Funds are held and invested by a trustee and are only distributed on a discretionary basis according to your stated wishes. Can be a standalone trust but can also be incorporated with other trusts. |
| Credit Shelter Trust | Spouse | At Client’s Death | Spouse is the beneficiary of the trust, but it is not considered a part of his or her estate. If the surviving spouse remarries, the assets cannot be commingled with those of a new spouse. |
| Irrevocable Life Insurance Trust (ILIT) | Spouse and/or Children | At Client’s Death | Holds life insurance proceeds for the intended beneficiaries as opposed to distributing them outright. Can also provide liquidity for owners of illiquid assets (farms, businesses, etc.). |
| Standalone Retirement Trust (SRT) | Children | At Client’s Death | Holds an inherited IRA, or other qualified retirement account, for the benefit of a named individual(s). Protects the inherited account from the beneficiary’s creditors because the beneficiary is only entitled to distributions according to the trust terms. |
| Inheritor’s Trust | Children/Grand-children | At Client’s Death | Gives the beneficiary control over the assets while allowing for protection from creditors. Beneficiary will have the power to appoint or remove the trustee and replace the trustee with a different one. The trustee has the authority to make distributions. |
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