So let’s assume that your insurance protection is solid, and you keep retirement money in qualified retirement vehicles. What’s next?

If designed correctly, an asset protection trust can be a valuable tool. This is simply a vehicle for holding assets and shielding them from creditors.

The key phrase here is “if designed correctly.” Mishandle an asset protection trust and you can inadvertently commit fraud. The movement of assets into such a trust, if not done legally, can be deemed “fraudulent transfer.” Does that get your attention? It should!

With any trust, you give up some control in order to gain other advantages. In estate planning, our clients place assets in trust so that they may be passed to children and grandchildren with less tax exposure. .Asset protection planning is different, because the goal is to protect assets for use and enjoyment during your lifetime.  Your team at Riverview Capital Advisors will make sure you get expert advice, comply with state law, and integrate the most effective asset protection strategies available to you.

What strategies are legal and useful

What strategies are legal and useful? Remember that it varies from state to state, but one possibility for many clients is joint ownership of married couples known as “tenants by the entirety (TBE).” If there is a judgment against one spouse in favor of a creditor, property owned by both spouses cannot be seized. In some states, only real estate can be owned in this way; in others, personal property can also be included.

The downside is that it’s not unheard of for both spouses to be sued, particularly if a family business is involved. So TBE alone does not make an asset protection plan.