Asset Protection Strategies
Effective Asset Protection Strategies You Need to Know
Creating and building assets to strengthen your retirement is significant to your success, but taking the necessary steps to protect those assets is crucial. Integrating asset protection strategies creates barriers surrounding your businesses, savings, investments, stocks, property, and more.
Why Asset Protection is Important
In the tragic event of your passing, you’ll leave your family and other loved ones distraught. Having these asset protection plans as part of your legacy planning can relieve the pressure and burden of dealing with the finances you left behind and how to handle them. Additionally, appropriate asset protection can help protect you from lawsuits and potential creditors in North or South Carolina, or elsewhere.
Key Asset Protection Strategies
Invest in Different Forms of Insurance
Have you heard the phrase “don’t keep all of your money in one place”? The same advice is used when investing in different forms of insurance.
Invest in Different Forms of Insurance
Tenants by entirety are important if you own a home while married. When owning property with the tenant by entirety agreement, spouses are not considered separate but are now considered one person by law. North Carolina law observes this type of tenancy in the form of property ownership for real estate property and personal property. This disables a creditor of only one spouse to attach property as tenant by entirety to appease a judgment or claim. The IRS is an exception to this rule if they are the creditor. While North Carolina law accepts tenants by entirety, South Carolina requires additional steps to get this same effect. Contact us for more information on this.
Create and Utilize an Irrevocable Trust
Irrevocable trust accounts are designed to protect you from creditors and other predators as long as the person responsible for transferring does not benefit from the trust.
Create and Utilize an Irrevocable Trust (a/k/a the Asset Protection Trust)
Irrevocable trust accounts are designed to protect you from creditors and other predators as long as the person responsible for transferring does not benefit from the trust. The grantor transfers assets to the trust holder through an irrevocable trust agreement. The grantor then teaches the trustee how to control their trust by putting directives into place in the document of trust.
Utilize Annuities
Most states law provides creditor protection for annuity contract proceeds. It’s vital to remember this protection applies only when payment in annuity is independent and not mingled with other assets.
Utilize Annuities
Most states law provides creditor protection for annuity contract proceeds. It’s vital to remember this protection applies only when payment in annuity is independent and not mingled with other assets. If commingled assets occur, the annuity can be subject to attachment by a creditor. Annuity contracts should be included and utilized in your asset protection plan.
Title Property as Tenants by the Entirety
Tenants by entirety are important if you own a home while married. When owning property with the tenant by entirety agreement, spouses are not considered separate but are now considered one person by law.
Title Property as Tenants by the Entirety
Have you heard the phrase “don’t keep all of your money in one place”? The same advice is used when investing in different forms of insurance. Consider these six options when browsing different types of insurance: life insurance, homeowners insurance, personal disability insurance, income insurance, automobile insurance, and malpractice insurance.
Establish and Invest in a 529 College Savings Account
A 529 college savings account is an incredible tool, especially in North and South Carolina. Investing in a 529 college savings account provides a way to help your children, and also gives you the satisfaction of having a way to potentially protect yourself from your creditors.
Establish and Invest in a 529 College Savings Account
A 529 college savings account is an incredible tool, especially in North and South Carolina. South Carolina’s plan is called Future Scholar. Future Scholar can help you save for your child’s college education and can give you tax advantages and investment options. North Carolina’s plan is called NC 529, which is designed to make college more affordable. Investing in a 529 college savings account provides a way to help your children, and also gives you the satisfaction of having a way to potentially protect yourself from your creditors.
Invest in Qualified Retirement Plans and Individual Retirement Accounts
Another excellent tool that can protect your assets is to start investing in a retirement account. Investing in an IRA can keep you one step ahead when you get close to retirement.
Invest in Qualified Retirement Plans and Individual Retirement Accounts
Another excellent tool that can protect your assets is to start investing in a retirement account. Start investing in a retirement account, specifically an Individual Retirement Account (IRA). IRAs are beneficial because they create long-term savings accounts for your retirement and can protect your assets from future creditors. This type of security is possible through a federal law created in 1974 called the Employee Retirement Income and Security Act (ERISA). ERISA gives tremendous protection from creditors of your employer and your personal creditors. Investing in an IRA can keep you one step ahead when you get close to retirement.
Connect with Your Financial Advisor in North & South Carolina Today
If you desire to begin or continue the asset protection process, contact us today to get help with your asset protection plan.
Schedule a Meeting with Us Today
Schedule a meeting with us at TruNorth Advisors to plan options and create a customized strategy for you.