When it comes to safeguarding your financial future, two critical strategies often go hand in hand: Estate Planning and Asset Protection Planning. While they serve different purposes, together they can provide a strong foundation to ensure your wealth is protected, and your loved ones are cared for.
Estate Planning is the process of organizing and managing your assets, medical and guardianship issues that will arise after death or in case of incapacitation. Estate Planning typically involves creating essential legal documents to help avoid altercations between family members and to prevent probate, which can be a lengthy battle that is both time and money consuming.
Legal documents include:
Power of Attorney - A Power of Attorney is a legal document that grants one or more persons the power to act on your behalf as your agent.
Revocable Trust - A Revocable Living Trust is a trust that is created and funded during your lifetime that you retain the power to amend or revoke.
Will - A Will is a legal document that describes how you would like your property and other assets to be distributed after your death.
(American Bar Association)
There is a common misconception that Estate Planning is only for the wealthy or those who are older. However, to ensure your financial and medical wishes are protected, initiating your Estate Planning is important regardless of age or net worth.
As you think about your financial future, consider both of these planning components as equally essential to achieving long-term security and peace of mind. Asset Protection helps safeguard your assets while you're alive, ensuring they are secure from potential risks, while Estate Planning ensures they are protected and distributed according to your wishes upon your passing.