It is important to offer asset protection for your spouse. Get an estate plan to protect your assets from bankruptcy, creditors or lawsuits. Obtaining an AB Trusts are irrevocable and offer asset protection in the cases described earlier. Because these trust are irrevocable, it protects assets in case your spouse files for divorce and remarries. If you do get involved with creditors, a bankruptcy or a lawsuit; you will want asset protection for your children and their future. The B trust will be drafted to provide for and take care of the spouse for as long as the spouse lives. The B trust also provides protection to the principal for the children or other beneficiaries benefit. The B trust proves most important when involving a couple with a blended family that have different end beneficiaries. Whatever assets remain in the B Trust will not be subject to estate taxes nor will creditors or bankruptcy trustees have access to these assets. Without a proper plan, your spouse or children could be subjected to increase federal estate taxes. Depending on your current net worth and tax situation, the potential upcoming changes in the federal estate tax may encourage someone to speed up their asset protection plan from those taxes or even bankruptcy.
Do the proper research and make an informed decision. It is always best to contact a bankruptcy attorney or estate planning attorney that specializes in asset protection. You need to let the attorney know, up front and early, that asset protection from a creditor or your spouse should be included in the AB Trust, estate plan or bankruptcy filing. If you already have an estate plan drafted that does not address your concerns, sit down with that current attorney (or possibly a new attorney) update and revise your current documents to include this asset protection.
No advice is given or intended. This article is not to be considered legal advice. Ian Filippini is not a bankruptcy attorney. Filippini Financial Group, Inc. is not a law firm.
Before Ian Filippini and his younger brother Alex Filippini worked for Filippini Financial Group, Inc. they were raised by father, Alfred Filippini, and mother, Deborah Filippini is the Santa Barbara and Montecito area of California.