Asset protection is only one financial goal. You must coordinate it with your estate planning, as well as your tax, investment and other financial goals. You want to create a comprehensive, integrated financial plan. For example, we integrate our client’s asset protection with their estate plan. People who need asset protection often have no estate plan – not even a simple will. Their need for asset protection oftentimes prompts estate planning. And we can oftentimes accomplish creative results when we combine asset protection with estate planning.
Asset protection plans might also offer legitimate tax benefits. For example, we may use the limited partnership to lawsuit-proof your assets but the limited partnership may also save you significant estate taxes. Of course, you want to avoid promoters who ‘sell’ asset protection through illegal tax schemes (pure trusts, etc.). And your planner should inform you about the tax and other financial consequences of any proposed plan.
For an integrated, complex plan, you should involve your financial and estate planning professionals. They’re essential members of the team. We encourage this team approach to our clients’ planning – particularly those who have considerable assets or complex estates. Our clients are quite satisfied when we plan their finances together with their other advisors. They then feel that their several financial concerns have been fully addressed and coordinated.