Often, we are surprised by the number of people we meet daily who believe that asset protection isn’t for them; it is something for the ultra-wealthy. Before you read another word on the internet today, you must know, asset protection is for everyone. You have worked for years, saving, investing, and planning for when you cannot work or are ready to retire. Proper wealth preservation is essential to protecting your hard-earned assets from the detrimental consequences and penalties of not consulting a proper estate planning attorney.
What is Asset Protection?
In the simplest of legal terms, asset protection utilizes various legal strategies and techniques that minimize taxes. Sheryll Law, P.C., does this by understanding the minimization of federal estate and gift tax to maximize the transfer of wealth to the next generation. We have recently written blog posts about various proposed changes to federal laws. You can read them here:
❖ What You Need to Know About the Build Back Better Act
❖ What You Need to Know About the New Sensible Taxation and Equity Promotion Act (STEP)
We pride ourselves on staying at the forefront of change related to proper estate planning and asset protection. Understanding changes that are coming allows us to fully understand how to mitigate estate taxes and take advantage of the current estate tax exemptions. It is important to remember that you need to contact us before the end of this year to plan property and take full advantage of those exemptions.
Mitigating Estate Taxes Through Strategic Asset Planning
The most common way to mitigate estate taxes is through trusts. Irrevocable trusts and asset protection trusts are commonly used methods to protect assets.
Types of Trusts:
❖ Grantor Retained Annuity Trusts – These are some of the most used estate planning strategies. The person transfers assets to a trust and receives a series of payments over the next couple of years that equate to the value of the original property. If the assets increase in value, the owner can receive the value of the assets without paying estate or gift tax.
❖ Insurance Trusts – Insurance trusts are designed to ensure the death benefit is not subject to estate tax. The premium payments owed on the insurance policy are generally paid by making annual gifts to the trust.
❖ Spousal Lifetime Access Trust – Naming your spouse as a trust beneficiary now classifies that trust as a grantor trust.
❖ Irrevocable Trust – A trust that cannot be altered and must be given to another individual called the trustee to protect your property from your future creditors. These are commonly used to protect your assets from the high costs of long-term care.
We understand that Asset Protection can be overwhelming and confusing. However, proper planning will maximize your wealth by protecting your assets for tomorrow. Call our experienced attorneys to learn how we can help you:
❖ Minimize taxes
❖ Plan for the future
❖ Protect your assets
❖ Rest easier
About Jay P. Sheryll, Esq.
Jay and his team help their clients leave a legacy and achieve the peace of mind of knowing that they can protect their families if something happens to them. Sheryll Law, P.C. understands that their clients have worked hard to build their legacy. It is their pleasure to help them leave their money to their loved ones according to their wishes. Having observed other firms haphazardly draft wills and throw together some powers-of-attorney without any thought to the planning aspect, Jay realized he could fulfill a need for East End Long Island clients.
Contact Sheryll Law, P.C. to Discuss Protecting Your Assets
Our experienced estate planning attorneys at Sheryll Law, P.C., work diligently to ensure that we establish a proper estate plan or trust that addresses each client’s specific circumstances in the East End of Long Island. Ready to secure your future and the future of your loved ones? Contact us at (631) 910-6315 or fill out the form to schedule a consultation.
Copyright© 2021. Sheryll Law, P.C., P.C. All rights reserved.
The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
Sheryll Law, P.C.
633 East Main Street, Suite 2
Riverhead, New York 11901
(631) 206-5893
https://sheryll-law.com/
