In our previous post, we began speaking about various techniques or tools for asset protection planning. As we noted, the purpose of the latter is to ensure that your assets are protected from unforeseen liabilities and creditors. Asset protection planning is essential to ensure that you are able to pass on to your family as much wealth as possible.
Asset protection planning is an important part of estate planning. The purpose of asset protection in the context of estate planning is to prevent a person's lifesavings from going down the tubes as a result of a lawsuit, an imprudent investment or an unforeseen personal liability. Reducing the amount of estate taxes on an estate is another of asset protection planning.