Do you appear to others as though you have a lot of money, a deep pocket?  If yes, you need asset protection for 2 reasons.

1. Someone who thinks he may have a claim against you is more likely to pursue a lawsuit, if he thinks you have lots of assets.
2. A trial attorney is more likely to take the case if you look like you have deep pockets and that he/she can collect.

How Asset Protection May Prevent a Trial Lawyer from Suing You

Trial attorneys work to earn money; they are paid on a contingency fee.   This means that they only get paid:

1. If they win the case and
2. If they can collect on the jury verdict or settlement

Being entitled to payment and being able to collect payment are not the same thing.

If you have asset protection measures in place, trial attorneys are more likely to say that suing you is just not worth the effort.  They can make more money by taking another case and suing someone who hasn’t done comprehensive estate planning with asset protection measures.

If you are a deep pocket, consult with a qualified estate planning attorney to get a strong asset protection plan in place.  If potential liability arises, suing you may just not be worth the effort.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

There are prevalent misconceptions about asset protection planning.  For example, many folks think asset protection always involves rich people putting assets offshore to evade taxes.  In this article, we’ll cure those misconceptions, while overviewing what asset protection planning is and what it isn’t.

If you would like to know how asset protection applies to your life, finances, and estate planning, consult with a qualified estate planning attorney.

The Goal of Asset Protection Planning

The goals may vary as clients vary, but the main goals are:

• To keep assets in the family
• To avoid lawsuits and guard against risks
• The lessen the financial destruction of lawsuits
• To level the playing field with plaintiffs who can sue by paying a trial attorney on a contingency basis
• To provide peace of mind

What Asset Protection Planning Is

Asset protection is:

• Necessary for everyone
• Part of a comprehensive estate plan
• As basic as purchasing umbrella liability insurance or
• As complex as placing assets in a trust sited on the Isle of Man
• Making efforts to keep assets in your family
• Avoiding lawsuits
• Organizing assets to minimize or eliminate risks to those assets before a potential creditor is identified

What Asset Protection is NOT

Asset protection is not:

• Avoiding taxes
• Defrauding creditors
• Hiding assets
• Based upon secrecy
• Making fraudulent transfers

Your most important take-away from this article is two-fold.  First, you need asset protection planning as part of your overall estate plan; and, second, asset protection planning must be done in advance (i.e. before liability arises.)  Consult with a qualified estate planning attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Estate planning documents, including advanced medical directives, only do what you want them to do if your loved ones know they exist and can locate them.

For example, if you don’t want to be hooked up to machines or be subjected to other medical heroics when you are in an end-stage medical condition, you need a legally valid living will.

However, just having the living will is not enough.  Your attending physician must have a copy of the living will in hand in order for it to be honored.

If no copy is available, either because your loved ones don’t know it exists or they know it exists, but can’t find it, it’s as if you don’t have a living will at all.

Then what happens is the burden is on your loved ones to decide whether or not to begin or continue life support.  It will be harder for your loved ones to sleep at night if they have to make the decision whether or not to “pull the plug,” so to speak.

In addition, your loved ones may not agree as to what is the best course to take.  What happens if some loved ones what no life support and no medical heroics and others want life support and all the medical treatment that is available?

Families are torn apart and lawsuits can continue for years.  After all, Terri Schiavo was kept alive for 15 years because her loved ones disagreed as to the discontinuation of life support.

Each adult needs a comprehensive estate plan, including advanced medical directives.  Be sure to tell your loved ones whether you have a living will and, if so, where they can find it, if the need arises.  Any questions?  Consult with a qualified estate planning attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Hospice provides end-of-live palliative care for those who are in the last year of their lives.  Hospice services are paid by Medicare and the goal is to provide palliative (not curative) care and support for the family.

Palliative Care

The goal of hospice is to keep the ill person comfortable.  There is no reason for anyone to die in pain.

There are no attempts to cure any illness.  Hospice services are available when no curative path is available or no curative path is chosen.

For example, a patient with advanced pancreatic cancer may choose hospice.  All attempts are made to provide medicine and care to eliminate pain.  No chemotherapy or radiation would be provided.

Stay at Home

Often, it’s a goal to keep an ill loved one at home as long as possible; so, hospice provides care at home.

If more support is required, many hospices have facilities where the ill person can stay 24/7, receive palliative care, and family can visit and receive support services such as counseling and social work support.

Examples of Care Provided

Hospice provides nurse evaluation and visits; pain control; wound care; caretakers to provide assistance with bathing, dressing, toileting, and shaving; and social worker sessions.

If you are ill and the doctor has provided a prognosis of one year or less, either the doctor or you can call a hospice for an evaluation to determine what services are appropriate for you and your family.  Most families who use hospice services rave about their experience.

If you have any questions about hospice or other elder care support services consult with a qualified estate planning attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

We understand that it can be overwhelming when a loved one is diagnosed with a serious illness.  There are all kind of family, financial, administrative and legal things to do and you may not be sure what to do or how to do it.  That’s why it’s in your best interest to call a qualified estate planning attorney for guidance.

Testamentary Capacity

A qualified estate planning attorney can determine whether your loved one still has legal competence.  If so, estate planning documents can be put into place so that your loved one’s wishes are carried out and your burden is reduced.

Checklist

A qualified estate planning attorney can provide a checklist of things you need to do and things to think about.  This way you won’t overlook anything.

Legal Advice

A qualified estate planning attorney can help you and your loved ones make important decisions.  Be sure not to take the advice of well-meaning neighbors, bank tellers, or loved ones.  Get good legal advice before making decisions.

Referrals

A qualified estate planning attorney can refer you to other professionals such as geriatric care managers, realtors, financial advisors, appraisers, insurance professionals, home care specialists, hospice care suppliers, etc.

Although it’s always in your loved one’s benefit to take care of these matters before serious illness strikes, it may not be too late.  Consult with a qualified estate planning attorney right away.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Estate Planning, Don\’t Forget About Your Pet

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Estate planning is a necessity for each person, age 18 or older.  We understand that in today’s economy, everyone is budget conscious; so, we’re addressing the issue of legal fees in estate planning.

The Cost of Failing to Plan

The cost of failing to plan is an unknown.  What is it worth to you to keep your money grubbing daughter-in-law from getting her hands on your son’s inheritance?  What is it worth to you to keep the court out of your business?  What is it worth to you to make sure your assets go to the people you want to receive them?  What is it worth to you to avoid probate, thereby keeping your affairs private?  What is it worth to you to keep your children from being disinherited?  What is it worth to you for you to be able to choose your children’s guardians?

The cost of failing to plan could be everything (and everybody) you have.

The Cost of Using a Form Downloaded from the Internet

Again, the cost of using a form downloaded from the internet is an unknown.  However, a general fill in the blank form with no legal advice, guidance, or review is likely the basis for an estate plan that won’t work.

An estate plan doesn’t work when it doesn’t do what you want it to do.  Estate planning is very counseling oriented.  It is not a once size fits all area of legal practice.

The Cost of Using a Low Fee Trust Mill or General Practice Attorney

Trust mills typically have financial advisors selling revocable living trusts.  You likely will never meet with an attorney who will give you customized legal advices and draft and review individualized estate planning documents.  Trust mills should always be avoided.

Any area of law is a career in and of itself.  No one can be good at everything.  Remember the old saying, “A jack of all trades is an expert of none.”  Would you rather have a less expensive general practice attorney or a highly specialized and highly qualified estate planning attorney on your side?

The Cost of Using an Estate Planning Attorney

A qualified estate planning attorney focuses his practice solely on estate planning.  He has years of education, training, and experience behind his legal advice.  It is likely in your best interest to view estate planning as an important investment in your well being and that of your family.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Are you the glue that holds your family together?  Are you the organizer of family events and holidays?  Are you the person that makes it all happen?  If so, it would likely be in your family’s best interest for you to bring your family in for estate planning in our San Diego estate planning office.

Your Estate Plan

Either during or after your own estate planning, bring your family in to our estate planning law office for a family meeting.  This is a great way for your loved ones to get to know and become comfortable with our San Diego estate planning attorney and our team.

Our attorney will give an overview of estate planning, in general, and will explain how your estate plan will work.  The family estate planning meeting allows your loved ones to ask questions and for you to discuss your choices.  This meeting avoids much future family discord.

Those named in the roles of trusted advisors such as executor, trustees, power of attorney agents, and guardians for minor children will learn about their important roles.  It’s imperative for them to learn ahead of time because a time of mourning or emergency is no time to learn anything.

Your Adult Children’s Estate Plan

If you have children, age 18 or older, they each need their own estate plan.  You are no longer legally authorized to make decisions on their behalf without written legal authorization.

An 18 year old’s estate plan is likely to be quite simple, but it’s important nonetheless.

Your Parents’ Estate Plan

Your parents need their own estate plan as well.  It’s likely time for long term care planning and you’ll be grateful that they have an estate plan in place when they need your help.

If there is no plan in place, a conservatorship proceeding is necessary.  Conservatorships are heart-breaking, expensive, time consuming, stressful, and a loss of control.  The court takes over.

If your parents have a plan in place but it’s more than five years old, it’s time for them to come in for estate planning.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Often clients come into our estate planning law office after they witness an estate planning tragedy in another family.  Strongly, and understandably, motivated they wish to avert tragedy in their own family.

Tom and Peggy came into our office for trust planning.  Peggy’s friend, Susan, had been widowed two years before and had lost all of her money to her new boyfriend’s business venture.  Susan was an intelligent, educated woman of 43; but, she made a decision that left her without any of the assets her husband had left for her when he died.

Here’s what happened:  Susan met Stan and they fell in love; Stan wanted to start a new tree trimming business but couldn’t get a loan from the banks in the current economic climate.  He suggested that Susan loan him the money and he would pay her back with interest.  The business failed.  Susan’s money was lost with no hopes of recovery.

Tom and Peggy were extremely motivated to protect their assets for each other and their children.  They saw that even smart people can make mistakes in the heat of the moment.  So, we set up a revocable living trust with trusts for the surviving spouse and children.  Remarriage provisions and asset protection language were added.

They updated their estate planning every four years and when Tom died 27 years later, all fell into place.  Their estate plan worked.  A family trust was set up to benefit Peggy and the children.  When Peggy got remarried, she knew to keep the family trust assets in the trust.  She did not pull them out to give, loan, or own jointly with her second husband.  She also got a prenuptial agreement.

Some years later, when Peggy died, the family trust assets were then divided into asset protected lifetime trust shares for each of the children.

We use stories like this one to teach estate planning concepts to our clients.  We find that real life stories emphasize and bring home the realities of the failure to have a good estate plan and that they are easily remembered.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Life changes as it unfolds and estate planning must reflect changes in your family, finances, and the law.  It is accepted principle to update your estate planning every three to five years or earlier if you have a significant life change.

Ronald and Rianne did their original estate planning when they moved in together after college.  They weren’t married at that time; so, they knew that they had no marital statutory (i.e. legal) rights.  They wanted to be able to make health care decisions for each other in the event of an emergency.

At what felt like the blink of an eye, it was 11 years later and Ronald and Rianne were married with three children.  One of the children has autism. Ronald has his own business as a landscaping contractor.

On a Tuesday evening, one of Ronald’s employees, while driving a company truck, falls asleep at the wheel.  The truck plows into a line of cars, waiting to make the exit to the Orange County fair.  A college student is killed, other drivers and passengers are injured, and there is much property damage.  Lawsuits are filed.

When Ronald’s lawyer begins to investigate, he determines that all of the company trucks are in Ronald’s individual name, not the name of the landscaping business.  Therefore, Ronald is personally liable for damages caused by the accident.  Fortunately, all lawsuits were settled for just under one million dollars, which was the coverage on Ronald and Rianne’s umbrella liability policy.

If they didn’t have the umbrella liability policy (i.e. personal catastrophic insurance) in place, they could have lost everything.

Shaken, the grateful couple came into our office for an estate planning review and update.  Updates included naming guardians for the minor children; creating a revocable living trust with provisions for their special needs child, pet, and asset protection trusts for the surviving spouse and children.

They also separated all personal and business assets and liabilities and completed a full insurance analysis, realizing that they needed additional life insurance and disability insurance to protect themselves and their children.

If your life has changed significantly since you last did your estate planning; or, it’s been more than five years since your executed your documents, be sure to consult with a qualified estate planning attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.