After spending so much time and effort accumulating your ‘stuff,’ doesn’t it make sense to protect it the best you can. Using asset protection best practices, you may be able to help yourself and your heirs make the most of what you have.
Look into Insurance and Annuities
The value of your insurance policies and annuities may be protected by state laws. However, Minnesota laws may not protect their full value. Before relying solely on insurance and annuities for asset protection, talk to an attorney and your financial advisors.
Max Out Contributions to IRAs and Qualified Retirement Plans
Money placed into retirement accounts may be partially protected from creditors, civil judgments, and vengeful ex-spouses. Here again, state law rules and asset protection may be limited.
Make the Most of Homestead Laws
In Minnesota, homeowners may protect up to $420,000 through their homestead exemption and up to $1,050,000 for homestead that are used for agricultural purposes.
Keep Business and Personal Assets Apart
Commingling your assets can make your personal assets vulnerable for business obligations. As an asset protection best practice, never let business and personal mix. This is especially critical when one or both is considered a ‘dangerous’ asset with a substantial risk for personal or business liability. For example, if you own an apartment building, don’t use your personal bank account to pay for repairs or maintenance.
Put Your Trust in Trusts
But make sure you use the right kind of trust. Revocable living trusts do not protect your assets. For a trust to save your stuff it generally must be irrevocable.
The idea behind this is that if you don’t control the trust assets, your creditors generally cannot take them.
Call Use to Learn More About Asset Protection Best Practices
Your assets – and your heirs – are worth the extra time it takes to set up asset protection strategies. We can’t cover every type of assets protection in a short article. Come in and talk to one of our experienced estate planning attorneys
At Virtus Law, your estate plan is our business. We can help you make thoughtful decisions and choose strategies that help you achieve your goals. Please contact us by calling 612.888.1000 or by emailing us at firstname.lastname@example.org. Our main office is in Minneapolis, with other offices located in Maplewood, Cambridge, Edina, Mendota Heights, and Red Wing.