Asset Protection & Tax Planning

With proper planning, you can create a legacy within your family and the community and divert much of what would otherwise go to the government or potential creditors. While we certainly get tax and litigation questions from families, the most common questions we receive are “How do I keep peace in the family?” and “How do we build, protect, and pass on our wealth to the next generation?”

Littleton Legal PLLC is here to help you to answer those questions while minimizing taxes through strategies such as dynasty trusts, private foundations, donor advised funds, asset protection trusts, and charitable trusts. We strive to minimize or eliminate taxes, but rest assured, protecting the best interest of you and your loved ones comes first.

Asset protection planning, which is an important part of estate planning, can protect you, your family, and your assets from lawsuits. You’ve likely already done some asset protection planning such as purchasing homeowners’ and auto insurance.

There are many ways to protect assets and the method we use will depend upon your goals, assets, and family. As we briefly mentioned, purchasing insurance is the simplest form of asset protection.

Additional methods include:

  • Setting up a business entity such as an LLC to own rental real estate or a business.
  • Including lifetime trusts for your spouse and children in your revocable living trust.
  • Purchasing long-term care insurance and/or Medicaid/nursing home planning.
  • Using domestic asset protection, spousal, children’s, grandchildren’s, or life insurance trusts.
  • Implementing offshore planning.

Asset protection planning helps you reduce risk of loss of assets from lawsuits, including divorce, landlord/tenant, car accident, slip & fall, bankruptcy, business failure, malpractice, and the like. Littleton Legal PLLC will help you to analyze risk, options, and peace of mind to get the best level of asset protection in place for you and your family.

While estate planning is not just about saving money, financial and tax planning is an important element of the process. High net worth individuals must contemplate capital gains, generation skipping transfer tax, estate and inheritance taxes, and income tax planning opportunities – for you and for your heirs – as part of the estate planning process.

Only about one percent (1%) of the population is directly affected by federal estate tax under the current law. However, even for the wealthiest, the federal estate and generation-skipping taxes are voluntary taxes. You volunteer to pay these transfer taxes only if you don’t plan. Contact Littleton Legal PLLC to develop a comprehensive estate plan that will minimize and/or eliminate estate taxes.