Accumulating wealth over one’s lifetime happens to a fortunate number of people. Often, these individuals have worked hard and been smart with their investments to accrue a respectable nest egg. In many cases, Georgia residents who have found themselves with more money than they can likely spend in their lifetime want to pass on those assets to their loved ones. As a result, they may be considering asset protection.
Protecting assets could help ensure that one’s wealth does not land in the hands of undesirable parties, namely creditors. These creditors could be those of the person who accumulated the wealth, or that person may have concerns that their loved ones may have creditors that could drain the family fortune. Luckily, certain estate planning tools could keep these assets out of the hands of creditors or other similar parties.
Taking these planning measures may prevent a person from inadvertently using illegal means to protect assets, such as making a fraudulent transfer or hiding assets. Some legitimate protection methods include:
- Using tenants by entirety on jointly held property
- Creating asset protection trusts
- Placing funds in retirement accounts, which are protected from creditors under federal law
- Utilizing offshore bank accounts and reporting the information to the IRS and other applicable agencies in accordance with federal and state law
Asset protection is important for many people because they do not want their hard-earned wealth falling into the wrong hands. Of course, each person’s financial situation is different, and the protection options that are right for one person may not be right for another. As a result, it is wise for Georgia residents to thoroughly consider their options before making a decision on how to best protect their wealth.