Estate & Legacy Planning

Estate &
Asset Protection

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What to Expect

Our services range from providing asset protection for yourself, to responsibly providing for your heirs and leaving a legacy. Regardless of where you are in this journey, understand everyone needs a plan. Not planning leaves your financial future and well being to the cruelty of chance.

There are two sides to planning. There are the quantifiable tax savings and asset protection. Then there is the human side of planning which entails minors, guardians, end of life wishes and more. These decisions are what give your plan a heart and make it unique to you.

Our Services

Trusts are integral to the foundation of modern planning. Trust law is flexible and designed with the user, i.e. you, in mind. We like to say there are as many variations of trusts as there are people and their situations.

Generally, planning encompasses both your business and estate. This means devising a corporate structure for existing operations, while keeping succession and other issues in mind. The solution most often is the layering of entities such as limited liabilility companies and trusts. This layering, or planning, should provide asset protection without limiting access your to assets or the ability to maintain your lifestyle.

The defining characteristic of the Domestic Asset Protection Trust (DAPT) is an individual may form a trust for themselves and receive asset protection, while still being able to benefit from and control the assets in the trust.

There are several significant benefits to a DAPT used in conjunction with an LLC structure:

Asset Protection: Assets in the DAPT cannot be reached by your creditors after the expiration of certain statutory periods, typically two years.

Lowers Umbrella Policy Expenditures: The DAPT holds significant assets spun off from your businesses, which provides protection from major claims and lawsuits and makes an insurance policy for these assets unnecessary.

Principal and Interest Allocation: The DAPT is governed by the Wyoming Principal and Income Allocation Act, which allows under IRC 643 certain sums of money that would otherwise be classified as income to be allocated to the maintenance of principal. This could reduce your tax bill by some 30%.

Earned vs. Unearned income: Flowing certain income flows through the DAPT would alleviate the reporting of that income as self-earned wages and reduce the amounts paid under FICA, FUTA and SUTA.

Captive Insurance: This allows you to pay yourself for the risk provided by your insurance company. These payments are tax deductible and are not included within the income of your insurance company. This also allows you to control distributions from the insurance company and to ultimately arbitrate tax bracket differentials.

The combined effects of these strategies could lower your tax liabilities, including payroll taxes, by some 70% or more.

Parting Thoughts

Everyone needs an estate plan. Whether it is for you or to provide for your family the best that you can after you are gone.

An estate plan is not simply a will; an estate plan has a number of elements. Most have a will, a Durable Power of Attorney, Advanced Health Care Directive, a living trust and then optionally an asset protection trust. The goal is to design a plan which works for you and your family. Please feel free to reach out with any questions you have.

Estate Planning Process

Learn what estate planning is about, from asset protection to planning your legacy.

Asset Protection Trust

Place your assets into a trust and outside the reach of creditors.

Private Trust Companies

Increase privacy and reduce cost by forming your own trust company.

Asset Protection Strategies

Learn various strategies for protecting your assets.