When you think of having a rainy day fund, you likely think of it in the traditional sense of having enough money set aside to get through a hardship. And while saving money for an emergency is a must, there is a new modern day 'rainy day' fund that every family should consider.
A modern day rainy day fund does more than help you get through if you lose a job or get sick- it also protects your hard earned assets through various forms of asset protection so they can't be lost or taken away by creditors, predators, lawsuits or divorce.
Some popular asset protections methods you should consider include:
- A Private Retirement Trust: A private retirement trust helps you protect assets during your lifetime that aren't typically protected from creditors or bankruptcies through traditional retirement plans. It legally converts “exposed” assets to “exempt” assets. You as the owner can fully maintain current status and asset attributes, retain beneficial interests during your lifetime, yet receive the highest degree of asset protection from unwanted creditors.
- Corporations and LLC's: Make sure that your second home or your business are properly protected from outside liabilities during your lifetime by holding them outside of your revocable living trust, and instead in a corporation or LLC. Talk with us about what option is best for you.
- A Spousal Asset Protection Trust: Often referred to in the legal world as the 'QTIP', this allows you to make sure the assets you pass to your surviving spouse upon your death will be protected from their future creditors, predators, lawsuits, or divorces, and eventually pass upon the surviving spouse's death to the children or beneficiaries you chose together.
- A Lifetime Asset Protection Trust: A newer and popular trust for upper middle class and high net worth families, this trust allows parents to pass money to their children upon the parents' deaths that will be protected from their children's current or future creditors, predators, ex-spouses, or lawsuits.
These are just some of the asset protection options available to you when you plan with Meier Law Firm! Talk with us today to find out how we can help you protect your assets for a 'rainy day'! Call Bonnie at 949-718-0420 to schedule a planning session today.