Planning Still Needed -- Even if you Intend to Leave Nothing to the Kids

Posted on September 27, 2011 by Ken Laino

In a recent survey of millionaire baby boomers (by U.S. Trust), less than half of the respondents said it was important to leave money to their children when they die.  That is according to an article in last Friday's Los Angeles Times by Walter Hamilton.

But here is an important reminder:  asset protection planning (and estate planning) is still critical even if you are unconcerned about what your children will inherit from you.

  • First of all, most of us do not know when we will die.  So even if you plan to spend down your children's inheritance, you can never be sure that you will do so.  You still need a Will, a Trust and/or other estate planning documents to cover distribution of assets on your death.
  • You also need to focus on asset protection planning in order to protect assets during your lifetime.
  • So even if you have decided that you are not very concerned about what your children will inherit -- you should still have some sort of an estate plan.  And you should certainly have a meaningful asset protection plan to be sure your assets are as well protected from creditors as they lawfully can be.

 

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Offshore Bank Accounts Are Still Advisable for Many Americans

Posted on September 26, 2011 by Ken Laino

Offshore bank accounts have been getting more and more scrutiny in recent years.  An article in last week's Bloomberg News by David Voreacos outlines yet another U.S. investigation relating to foreign banks.  Eight offshore banks are now under a federal grand jury investigation -- for facilitating tax evasion by U.S. citizens.

But none of this means there is anything inherently wrong with having offshore accounts.

There are many good business and financial strategies that utilize offshore investments.

Investing has obviously gone global, and offshore accounts are perfectly legitimate and advisable for many U.S. citizens.  Holding funds offshore can also have asset protection advantages by making those funds more difficult for creditors to reach.

Asset protection planning is not centered on hiding assets; and it certainly does not involve unlawful tax evasion.  It does involve using lawful means to make assets more difficult for creditors to reach.  Under the right circumstances, offshore accounts can be advisable from both a financial and an asset protection standpoint.

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