Your assets won’t protect themselves. Creditors and taxes can take a huge chunk of your hard-earned money right out from under you. It’s necessary to incorporate deliberate, educated strategies to secure your financial future and shield your hard-earned money from risk. The wealth management team at Metroplex Wealth is well-versed in the art and science of asset protection to ensure our clients assets are legally protected.
While no one wants to consider the possibility of losing their assets, it’s wise to consider worst-case scenario and plan accordingly. Traditional IRAs and Roth IRAs, for example, have a generous cap protecting them from bankruptcy proceedings while certain plans quality for unlimited protection. 401 (k) or 403 (b) plans, meanwhile, feature exemptions from most creditors’ claims.
Family Limited Partnerships
Controlled by family members, a family limited partnership is an beneficial structure available to some clients to protect their assets. When it comes to effective tax minimization and estate planning, establishing a family limited partnership is the way to go.
A considerable driving force behind building wealth is securing the financial future of your family. Gifting a portion or all of your assets to family or a charitable organization of your choice is an effective strategy with a big impact. By reducing taxes and probate fees and limiting exposure to creditors, certain assets can certaInly be protected through gifting.
Trusts can be designed to protect your hard-earned money from creditors as they can be shielded from estate taxes. When setting up a trust, a trustee will manage your property and money, requiring you to relinquish some control of your assets.
After working long and hard to accumulate significant assets, it’s worth taking some time to consider how you can protect your assets most effectively.