Estate planning is one of the key steps anyone can take to protect their family and their assets. One of the best-known reasons for thorough estate planning is the tax advantages. However, that’s not the only reason or even the most important one. Peace of mind is really the most significant reason to pursue estate planning. Proper planning will help protect the estate from litigation and claims.
It may be helpful to consult an experienced lawyer when conducting estate planning. Right now, the coronavirus pandemic is creating a challenging economic climate, and historical evidence suggests that there’s an increase in litigation just around the corner. This means that protecting estates from claims is becoming a more pressing issue. Some of the measures that estates take to protect assets can be construed as fraud under some conditions. Assets that are transferred must receive reasonably equivalent consideration to avoid being attached during a lawsuit.
There are several ways to overcome this obstacle. For example, it’s appropriate to form a trust for survivors such as spouses or children at death. It’s also acceptable to transfer assets in exchange for interest in an LLC. There are requirements that need to be met in order for these moves to be workable. Limited liability companies must be organized and function as real companies, for example. Trusts must include certain provisions, such as a spendthrift clause, to be valid.
This level of detail is the reason it may be beneficial to have a seasoned lawyer on your team to ensure that your assets are protected and passed as planned. When it comes to wills and estates, consulting with an experienced attorney may help prevent problems down the road.
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