When done correctly, estate planning can help protect assets in a way that ensures that heirs and beneficiaries are able to retain as much of the estate’s wealth as possible. This may mean utilizing wills and trusts to direct asset distribution upon death, but it may also mean choosing estate planning tools that minimize risks, costs and taxation. However, there are other issues that may arise that threaten the financial viability of an estate, even one’s that are protected by a strong estate plan.
One event that can quickly derail an estate plan is an unexpected lawsuit that is brought forth during a testator’s lifetime. If successful, one of these lawsuits can quickly erase all, or at least a significant portion, of the assets that have been accumulated over time, which were meant to be handed down. This is not a problem solely for the rich, either, as those with less assets can be wiped out financially much more easily when a lawsuit is filed.
So, what can Arizonans do to ensure that their estates are fully protected? Besides engaging in standard estate planning, such as creating wills and trusts, individuals can consider ways to retain control over wealth without actually owning it. This can be achieved in a number of ways, such as by investing in limited liability companies, limited partnerships and foreign asset protection trusts.
These are comprehensive but complicated ways to approach estate planning. However, those who feel like they may be susceptible to lawsuits may want to further consider what they can do to protect their estates. The legal team at the Moore Law Firm stands ready to assist these individuals with considering and acting on the various estate planning options that are available to them.