Once you have accumulated a significant store of assets you can feel a sense of accomplishment and perhaps a little bit of relief. However, when you are standing on this plateau you have a new set of challenges that you must address.
One of them is the necessity to protect these resources. If you were to become the target of a lawsuit and your assets were not positioned properly they could potentially be attached and this is certainly not acceptable. Anxious creditors could also be a concern.
Another thing to brace yourself for is the possibility of the imposition of the estate tax and/or the gift tax. These levies carry a 35% rate at the present time, and it is going to get worse before it gets better because the maximum rate goes up to 55% next year under currently existing laws.
One possible course of action to address both of these concerns would be to place resources into with is commonly called an Alaska trust. These are self-settled, irrevocable trusts established in the state of Alaska.
The grantor of the trust can also act as beneficiary and receive monetary distributions, but the assets are not considered to be part of the grantor’s estate for tax purposes. And, these assets are protected from creditors and claimants.
To learn more about Alaska trusts and other ways to position your assets intelligently take action right now to set up a consultation with a seasoned and savvy Indianapolis estate planning lawyer who has a thorough understanding of proven wealth preservation strategies.