Most asset protection “gurus” believe asset protection revolves around helping clients who have money protect that money from your “typical” creditor from a negligence suit. A few examples of a typical creditor are someone injured by someone negligently driving a car, a patient who sues a physician for malpractice, or someone who slips and falls on property and sues the owner.
While it is true that clients with money do need to protect themselves from the “typical” creditor, there are many other creditors out there clients need to be protected from.
Asset protection can be done domestically or offshore. Domestic asset protection revolves around the use of LLCs and FLPs. To learn more about these asset protection tools, click here.
Who are other common creditors clients don’t think of as a “typical” creditor?
The IRS and state government (if you have a state income tax). The IRS is everyone’s number one guaranteed creditor every year. Every year high-income clients pay taxes to this creditor. Would you like to pay $15,000, $50,000, $100,000+ less in income taxes this year? Absolutely. That’s what our firm may be able to help you accomplish.
The stock market. You know this is the case if you had money invested from 2000-2002 when the stock market lost nearly 40% of its value and again when the stock market crashed between 2007 and March of 2009 when it lost 59% of its value (numbers from Yahoo Finance). Think about it, did you lose money from 2000-2002 and again in 2007-2009? Absolutely. Would you like to position your money in wealth-building tools with good potential for growth and still principally protect all or the majority of your money? Would you like to about a wealth-building tool that comes with an Income Account Value* (not walk away value) that could provide a guaranteed lifetime income* you can never outlive?
*Any guarantees mentioned are backed by the financial strength and claims-paying ability of the issuing insurance company and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract.
Estate taxes. Clients with wealth all worry about the estate taxes that will be paid upon their death.
Other advisors may not be familiar with estate planning and the various ways to mitigate estate taxes. Our firm has helped many clients reduce their “advanced planning” strategies that may not be well known by other advisors. To learn more about estate planning tools you can use to mitigate or avoid estate taxes, please click here.
Long-term care (LTC) expenses. The most likely expense for clients over the age of 65 is LTC expenses (drug costs, home health care, nursing home, surgeries, etc.). It is extremely important for clients to know how to manage these expenses. It is vitally important for clients to protect themselves from this guaranteed expense. Most clients do not like the idea of paying LTC insurance expenses because it is seen as a waste of money if you don’t use it. Our firm has experience using products such as FIAs and single premium life policies that have wealth-building or transfer features, including an LTC benefit. To learn more about how to protect your estate from LTC expenses, please click here.
*Any guarantees mentioned are backed by the financial strength and claims-paying ability of the issuing insurance company and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract