We’ve all heard the expression “sue me” at least once or twice. However, in the US, people take this expression quite literally. America is one of the most litigious societies in the world, with millions of lawsuits being filed every year. During litigation, your assets can be at risk. Estate planning can be a useful tool to protect your assets in the event of a lawsuit.
Estate planning allows you to protect and preserve your assets, as well as make it easier to
transfer assets in the event of litigation. It can also help minimize your tax obligations in some
instances. Estate planning is one of the best ways to protect your wealth, oftentimes in the
form of a trust. A trust allows a third party, known as a trustee, to hold assets on behalf of the
beneficiaries. While there are many different kinds of trusts, an irrevocable trust is the best way to make sure your assets are protected.
An irrevocable trust is a trust that cannot be revoked, meaning that once the terms are
established, they cannot be changed or canceled. While this may seem like somewhat of a
disadvantage, an irrevocable trust relinquishes your control of the assets, which places them
out of reach in the event of litigation. You are able to designate a trustee, who manages the
trust, and beneficiaries, which the trustee can be one of. Beneficiaries can be your family or
close friends, or even a business or nonprofit entity.