How to Protect Your Assets in Michigan
Asset protection is an important consideration for many individuals, particularly high net worth individuals and owners of businesses. However, asset protection is not limited to the wealthy alone; asset protection can be used for myriad things, including protecting your assets from any future lawsuits, ensuring that your assets are distributed quickly to your loved ones and beneficiaries upon your death, avoiding taxes and probate, planning for long-term care to reduce asset expenditures, and more. If you live in Michigan, here are some ways that you can protect your assets. Before moving forward with any of the following suggestions, be sure to consult with an experienced attorney:
Create a Separate Business Entity
If you are the owner of the business or are considering the formation of a business, you want to be sure that your business structure is one that separates your personal liability from your business’ liability. If liability is not separated, then a mistake on the part of your business could cost you everything, including money in separate accounts, your house, your vehicle, and more.
Take Advantage of Retirement Accounts
One of the best things about retirement accounts is that they offer asset protection, including up to one million dollars in assets in an IRA in the event of bankruptcy, and unlimited asset protection in ERISA-qualified retirement plans.
Create an Estate Plan
Having an estate plan does more than just protect your assets from intestate succession laws upon your death; it can also help to mitigate estate taxes, saving your estate money. Having an estate plan also gives you peace of mind when it comes to ensuring that your loved ones are cared for after you’re gone.
Owning insurance may not be the only way to protect your assets, but it is one of the wisest. Consider the following types of insurance, and seek those which are applicable to you:
- Car insurance;
- Homeowners’ insurance;
- Workers’ compensation;
- Business liability insurance;
- Life insurance; and
- Long-term care insurance.
Understand Homestead Exemptions
A homestead exemption protects the equity in your home, meaning that creditors cannot claim the equity if you need to declare bankruptcy. The exemption applies to all real property. You can read more about the homestead exemption in Michigan statute section 600.6023.
Protect Your Assets – Work with an Experienced Norton Shores Elder Law Attorney
Taking action as soon as possible to put in place an asset protection plan is smart, and may have a huge impact on your future or the future of your loved ones. For help forming an estate plan that protects your assets and provides for those you care about the most, contact The Law Offices of David L. Carrier, P.C. You can reach our talented Michigan estate planning attorneys online or by phone today.