Scottsdale Asset Protection Planning Attorney
Planning is an important step in the estate planning process, regardless of age, health, and wealth.
Asset protection planning is an essential part of a comprehensive estate plan for individuals, families, and business owners throughout Scottsdale. Whether you own a home, operate a business, have investment accounts, or are building wealth for future generations, taking proactive steps to protect your assets can help preserve what you’ve worked so hard to achieve.
A well-designed asset protection plan helps ensure that your loved ones have access to the financial resources they need while minimizing unnecessary legal complications after your passing. It can also provide valuable protection during your lifetime by helping shield certain assets from creditors, lawsuits, and other financial risks. If you are facing potential litigation, own a business, or are going through a divorce, asset protection strategies may help safeguard your financial future.
For Scottsdale business owners, physicians, real estate investors, and other professionals, asset protection planning is especially important. As your wealth grows, so does your exposure to potential legal claims. Implementing the right legal structures before problems arise can significantly reduce your financial risk.
There are a variety of legal strategies available to protect different types of assets. These may include properly structured trusts, limited liability companies (LLCs), family limited partnerships, and other business entities designed to separate personal assets from business liabilities. An effective asset protection plan works alongside your insurance coverage to provide multiple layers of protection and make it more difficult for creditors to reach protected assets.
At Kierman Law, we provide personalized asset protection planning for individuals, families, and business owners in Scottsdale and throughout the surrounding communities. We take the time to understand your unique financial situation, concerns, and long-term goals before recommending strategies tailored to your needs. If you’re looking for an experienced Scottsdale asset protection planning attorney, contact Kierman Law, today to schedule a consultation and begin building a plan that protects your assets and your family’s future.
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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