Much of our lives are spent providing for our families and ourselves so we can be financially secure in the future. Accumulating wealth and assets is the result of a lifetime of work that we want to preserve for the benefit of our families.
The estate planning attorneys at Martin Heller Potempa & Sheppard, PLLC help individuals in and around Nashville make sure their life’s work is protected in the future to reflect their interests and desires. Our firm represents all types of clients, regardless of the size of a person’s estate or amount of their wealth. We assist with planning for all circumstances, including those that may arise from marriages, disability, or death.
Our lawyers work with our clients to make sure the proper tools are put in place to maintain their assets in an efficient and beneficial manner. If you need assistance in family wealth preservation, or any other estate planning services, contact our office today to find out more about how we can help.
Protection from Sources of Potential Liability
Sources of liability that can diminish the assets in an estate may include a variety of circumstances, including ownership of real property, divorce, negligence, auto liability, liability from children, agents, or employees, contractual liability, as well as a liability as an officer, or director of a business, or professional malpractice. Because of the various ways your financial assets may be impacted, trust and entity planning can be an important aspect of protecting your assets from potential creditors, and preserve wealth for future beneficiaries.
Our firm helps clients evaluate their need for an asset protection plan, and develop a legal strategy to secure assets as well as minimize tax and transfer penalties. We also assist individuals in preserving their wealth for the next generation with effective generational transfers, as well as charitable gifting facilitation services.
Types of Wealth Preservation Tools and Instruments
In making sure your assets are protected and wealth is preserved, many different strategies and tools may be utilized. Such options may include:
Limited liability companies
Multi-generational dynasty trusts
Wealth preservation is usually only one part of a larger wealth management plan, which includes estate planning, will, and trust constructions that work together to meet your interests and goals. Trusts are often set up as wealth preservation instruments that can protect family wealth from creditors, legal judgments, bankruptcies, or business-enterprise debts.
For example, a Tennessee Asset Protection Trust (TAPT), formed pursuant to specifications under the Tennessee Investment Services Act of 2007, allows an individual, or grantor, to contribute assets to a trust that are exempt from the claims of creditors while allowing him or her to retain the right of the economic benefit of the trust. For a trust to qualify under the Act, it must meet five requirements:
The trust must be governed by Tennessee law;
The trust must be irrevocable;
It must have a spendthrift clause preventing the voluntary or involuntary transfer of interest;
It must appoint a qualified trustee in the state; and
The trust must contain an affidavit by the grantor with its own requirements stated under the Act.
A TAPT creates significant greater protection to the grantor’s assets and can be a valuable tool in family wealth preservation strategies. Each wealth preservation plan is unique and tailored to the desires and needs of an individual. A seasoned attorney can help you evaluate your financial position as well as future interests.
Business Succession Planning as Part of Wealth Preservation
If you have a family business that has supported generations, you may be worried about what will happen to it when you pass. As part of managing your assets and estates, you may want to consider business succession planning as part of that plan.
By deciding early what you want to have happen to your business, you have control over the future. You will want to:
Select and train your successor
Create a timeline if you plan to retire
Share your business plans with the successor and key parties at play
The best action to take is often being transparent with all parties involved in your business. It helps protect you, while also preparing them for the next phase.
Lawyers Providing Estate Planning Services in Franklin
Ethical rules, as well as both state and federal law, govern asset protection planning. Representing clients in and beyond the Franklin area, the estate lawyers at Martin Heller Potempa & Sheppard, PLLC are familiar with these regulations. We are focused on conforming your plan to these ethical considerations while helping you protect your family’s wealth. We also serve clients in Sylvan Park, East Nashville, and Brentwood, as well as across Tennessee, helping them plan for their families’ futures. If you need legal assistance regarding family wealth preservation or other estate planning services, please contact us online or by phone at (615) 800-7096 today.