Asset protection is one of the most important goals of California estate planning. The process of asset protection involves engaging in estate planning to protect assets from potential creditors and decrease tax liability. California residents work hard throughout their lifetime to earn assets with which to provide for themselves and their families. Taking the time to engage in asset protection planning as early as possible can help California families prepare for retirement and possible incapacity.
Planning for asset protection under California law presents a set of unique challenges. At Heritage Legal, PC, we use estate planning strategies to help our clients engage in asset protection. At our Palm Springs asset protection law firm, we provide our clients with sophisticated guidance as to how to protect their hard-earned assets from third parties. We also help clients arrange for their assets to pass seamlessly to their designated beneficiaries. Contact our Palm Springs law firm today to schedule your initial consultation and learn how we can advise you as to how to protect your assets in the most effective ways possible.
Asset Risks in Estate Planning
In our increasingly litigious society, it is more important than ever to protect one's assets from potential risks and creditors. Many vulnerabilities, including the following, can put the assets of California residents at risk:
- Personal injury liability resulting from a motor vehicle accident
- Professional medical, legal, or other malpractice liability
- Personal injury liability for an accident that occurred on the property owner’s premises
- Personal liability imputed from business or corporate liability
- Personal liability caused by guaranteeing the debts of another person
- Liability from lawsuits filed by former business partners or business clients
At Heritage Legal, PC, we work with our clients to implement legally-sound strategies to help preserve their wealth and protect their assets. We've successfully represented individuals, professionals, property owners, small business owners, and other clients throughout Palm Springs. No matter our clients' situation in life, we work hard to protect their assets against potential liens, judgments, and liability from lawsuits.
California Asset Protection Strategies
At Heritage Legal, PC, we employ many asset protection and wealth preservation strategies. Our goal is to ensure that our clients and their families keep as much of their assets as possible. We help our clients protect their legacies and provide for their family members. Some of the asset protection strategies we use include the following:
- Creating an LLC or a family limited partnership to hold property and other assets
- Creating professional corporations for professionals, including doctors, in California
- Engaging in business succession planning to prepare for a smooth transition
- Creating trusts and IRA stretch accounts to minimize tax liability
- Creating irrevocable life insurance trusts to reduce tax liability on life insurance
- Creating charitable trusts to ensure that our client’s assets support causes near to them
Asset protection planning is not limited to end of life estate planning. Instead, California residents should engage in asset protection early-on. At Heritage Legal, PC, we help clients engage in asset protection at all stages of life. We help our clients effectively navigate California's legal systems. We offer clients the following life-long asset protection legal services:
- Premarital and Postmarital agreements
- Protecting assets during a second marriage
- Preserving assets for our clients’ future generations
- Preserving Medicaid, Social Security Disability, and VA benefits
- Protecting assets from personal and business creditors
Why California Professionals Need to Protect Their Assets
Under California law, most licensed professionals are not allowed to practice under the protection of a limited liability corporation (LLC). In other states, lawyers, doctors, and other licensed professionals can create an LLC that protects their personal assets from lawsuit liability. California law does not offer a professional LLC option. California physicians and lawyers can practice their professions inside of a corporate business structure.
Even while practicing within a corporation, however, physicians and other licensed professionals may still be personally liable for malpractice. At Heritage Legal, PC, we have helped many professionals insulate their homes, investments, savings, and retirement funds from potential malpractice claims.
Protecting Assets in California Real Estate
Many California residents' homes are their most valuable asset. Asset protection involving residential real estate or rental property typically consists of a change in the legal ownership of the property. Property owners may transfer their property into a Family Limited Partnership, a corporation, a Limited Liability Company, or a trust for increased asset protection.
Founding attorney Chris Heritage has extensive experience involving real estate asset planning in light of California's Proposition 13, which affects transfers of real property in California. When a property owner transfers ownership to an LLC, a Family Limited Partnership, or a trust, the transfer is a change in ownership unless an exception applies. At Heritage Legal, PC, we advise clients on the ways to legally avoid a reassessment of property tax that could result in a notable tax increase.
Protecting Assets Through Trusts
Creating a trust in California is one of the most common ways to engage in asset protection. At Heritage Legal, PC, we listen to the needs of our clients and their families and advise them as to which one of the many types of trusts would benefit them the most. Revocable living trusts are the most commonly used trusts in California. However, living trusts do not offer the best type of asset protection. In contrast, irrevocable trusts provide significant protection for the trust creator, called the grantor, from debtors or creditors. In irrevocable trusts, the legal ownership of the trust assets permanently transfers from the settlor to the trust.
Asset Protection for Palm Springs Residents
Taking the time to engage in asset protection can save California residents significant time and money. If you are interested in engaging in asset protection but don’t know where to begin, we can help. At Heritage Legal, PC, we listen carefully to our clients’ needs and goals and advise them as the best ways to protect their assets under California law. Contact our Palm Springs estate planning law firm today to schedule your initial consultation and learn how we can help you protect your assets. |