When building wealth, it is important to take precautionary measures to protect assets that go beyond insurance. “Asset protection planning is the process of arranging your financial affairs to prevent or at least minimize the risk of your assets being used to satisfy claims of future creditors or claimants.” Insurance is a common tool used for asset protection, but this article discusses how it is not the only thing that people should use. There are different ways in which people can incorporate trusts into their asset protection plan. This column briefly outlines the different types of trusts that people can use. These can include protective trusts, irrevocable trusts, and domestic self-settled trusts. It is important to start planning as soon as possible, and remember that asset protection planning is not a substitute for insurance.
See Kim Dwyer, Beyond Insurance: Advanced Asset Protection Strategies, Wealth Management, April 14, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
