*A common mistake in asset protection planning by doctors is failing to understand the concept that the more control you maintain over your assets, the less insulated those assets are from potential creditors. For example, if someone has recommended that you establish a revocable trust for your children to protect assets you may as well have left your money in a bank account because a revocable trust by definition is revocable by the settler (creator) and as such grab-able by potential creditors. Similarly, if trust planning is something you wish to explore, it is important to note that the more independent the fiduciary, meaning the further removed the person in charge is from you, the safer your assets are. In certain situations trusts may be breached to recover assets. The key to successful asset protection is removing yourself from the equation.
However, its important to remind you of the current divorce rate and stress this office is not recommending moving every penny into your spouse’s name!
For additional information on this topic, contact Jennifer Kirschenbaum at (516)-747-6700 ext. 302 or at Jennifer@Kirschenbaumesq.com.
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