Aurora Asset Protection Planning Attorneys

Home /  Aurora Asset Protection Planning Attorneys

Asset Protection Planning Lawyers in Colorado

At Burr Law, we understand the importance of asset protection planning for our clients in Denver and Aurora. Our team of experienced lawyers is dedicated to helping you safeguard your assets and minimize your exposure to potential legal liabilities. We offer comprehensive business asset protection planning services, including the creation of trusts, LLCs, and other legal structures designed to shield your assets from creditors and legal claims. Our attorneys also provide guidance on insurance coverage, retirement planning, and other strategies to help you protect your wealth and achieve your financial goals.

Burr Law take a personalized approach to each client, working closely with you to understand your unique needs and goals. With our help, you can enjoy the peace of mind that comes from knowing that your assets are secure and protected. Contact us today to schedule a consultation with one of our asset protection planning lawyers.

Understanding Asset Protection Strategies

Asset protection strategies are legal tools and techniques used by individuals and businesses to safeguard their assets from potential legal threats. Here are some common asset protection strategies:

  1. Irrevocable trusts: An irrevocable trust is a legal structure that transfers ownership of assets to the trust, which is managed by a trustee. Once assets are transferred to the trust, they are no longer owned by the individual or business, reducing the risk of legal liability.
  2. Limited liability companies (LLCs): An LLC is a type of business structure that offers limited liability protection for its owners. This means that the owners are not personally liable for the company’s debts or legal obligations.
  3. Family limited partnerships (FLPs): An FLP is a legal structure that allows family members to pool their assets together in a partnership. This can offer increased asset protection, as the partnership is a separate legal entity that can protect assets from potential legal threats.
  4. Insurance policies: Insurance policies, such as liability insurance, can offer protection from legal liability. In the event of a lawsuit or other legal action, the insurance policy can cover legal expenses and damages.
  5. Retirement accounts: Certain retirement accounts, such as 401(k)s and IRAs, offer asset protection under federal law. These accounts are typically exempt from bankruptcy and creditor claims.
  6. Homestead exemption: In some states, individuals can claim a homestead exemption, which offers protection for their primary residence from creditors.
  7. Offshore trusts and accounts: Some individuals and businesses may choose to establish offshore trusts and accounts to protect their assets from potential legal threats.

Don’t Fear the Money Conversation

Some of the largest contributing factors to generational loss of wealth are a lack of communication and trust among family members and the failure to prepare heirs. Often, fear is what underlies the lack of communication and trust that inevitably leads to unprepared heirs. Following are some of the fears that prevent people from communicating with their loved ones about their wealth.

Common Fears

Fear of Creating an Entitlement Mentality. We have all heard horror stories about trust-fund kids who had no motivation to do anything other than relax and enjoy life because they knew that a large inheritance would be available for spending once they reached a certain age.

Luckily, by working with an experienced estate planning attorney, you can craft an estate plan that avoids this outcome. Your estate plan could include incentives for your beneficiary, such as qualifying to receive money from the trust only if they graduate from an accredited college or university with a certain minimum grade point average. You could also include restrictions on what the money can be used for, such as tuition, starting a new business, or the purchase of a first home, eliminating the idea that the money is available for luxury or frivolous items.

Fear That Heirs Will Squander Their Inheritance. You have worked hard to create and maintain your wealth. You have spent where you needed to and saved in other areas. It is reasonable to fear that when you pass along your wealth, your level of frugality may not go with it. As mentioned, to combat this fear, you can include provisions in your estate plan that list exactly what the money you are leaving your loved one can be used for. If your intent is to provide your loved one with an education and seed money for their first business, you can restrict the use of the money to those purposes. Or you can select successor trustees who will make trust distributions in accordance with your long-term objectives for your money and your loved ones. This means that if your loved one wants a wild weekend in Vegas, they will have to find the money for that elsewhere.

Fear That Outside Influences Will Overtake Heirs. Unfortunately, there are some not-so-nice people in the world. These people tend to enter your life and the lives of your loved ones when there is money at stake. While your loved one may be incredibly level-headed and frugal, it can sometimes be hard to say no to a partner who wants to go on expensive trips or buy nice clothes. In addition, with about half of all marriages ending in divorce, potential gold diggers may find your loved one even more attractive if there is the possibility of a large divorce settlement. Through proper drafting, an experienced estate planning attorney can not only restrict how your loved one accesses the money you leave them but also protect it from creditors and predators.

Fear of Treating Heirs Unequally and Fostering Sibling Rivalry. Depending on your parenting philosophy, you will have to decide whether you want to treat your children or grandchildren equally or fairly in your estate plan. Treating your loved ones equally means that they all receive the same amount; treating them fairly means that your loved ones receive money and property according to their individual needs and situations. The answer to the “equally or fairly” question will depend on your unique circumstances and intentions and may take some soul-searching.

Fear That Disclosure Now Might Limit Choices and Changes in the Future. Whom you tell about your plan does not impact your ability to change your mind; however, the type of plan you create may limit your ability to make future changes. Although having an initial conversation with your family about your financial wishes can be nerve-wracking enough, and meeting with them a second time to let them know you have changed your mind could be even more so, the difficulty does not diminish the importance or the benefits of being open and honest with your family. This is why we generally recommend that families hold an annual retreat to discuss their wealth in case a change has occurred, or even if nothing has changed, to spend time together as a family.

Overcoming Your Fears

Creating a comprehensive financial and estate plan with the help of experienced advisors, in addition to having an honest and open conversation with your loved ones about it, are two of the first steps to overcoming the fears that arise about money and inheritance. To help you prepare to create your plan and discuss it with your family, consider how you would answer the following questions. You can also download our convenient handout, “Your Thoughts on Money,” to guide you through this thought exercise and any conversations you want to have with your loved ones about your financial and estate plan.

  • What does money mean to me?
  • Am I comfortable telling my family about my plans for my wealth?
  • What do I want to teach future generations about money?
  • How can I help future generations develop financial competency?
  • Am I concerned that I am going to run out of money?
  • Do I worry about creating an entitlement mentality among my children, grandchildren, etc.?
  • If I leave a large sum of money, do I think future generations will squander it?
  • Do I think outside influences will take advantage of my children and grandchildren if I leave them a large sum of money?
  • Do I want to treat my children and grandchildren equally or fairly?

The answers to these questions will help you express your fears, attitudes, and goals about your wealth and how you want to ultimately pass it down (or not) to your children, grandchildren, and beyond. Also, discussing your philosophy about money with your loved ones will allow them to know what to expect after you are gone instead of being left in the dark. Call us to schedule an appointment so we can discuss your options for protecting your wealth for generations to come.

Whom We Serve

At Burr Law, we serve retirees, business owners, and families in the Aurora and Denver Metro Area seeking to protect their assets and achieve financial security. Our team offers a range of services including retirement account asset protection planning, domestic asset protection trusts, irrevocable trust asset protection planning, estate planning, asset preservation planning and asset protection planning for small business owners. We work with clients in Aurora and Denver to develop personalized strategies that reduce legal liability, minimize tax liability, and protect assets from potential legal threats.

Frequently Asked Questions

What types of assets can be protected through asset protection planning?

Assets such as real estate, investments, cash, personal property, and business assets can be protected through asset protection planning.

What are the risks to my assets if I don’t have an asset protection plan in place?

Without an asset protection plan, your assets may be vulnerable to creditors, lawsuits, and other legal actions, potentially resulting in financial loss or bankruptcy.

What are some common asset protection strategies?

Common asset protection strategies include creating trusts, forming limited liability entities, asset segregation, and insurance coverage.

How does the attorney develop a customized asset protection plan for each client?

An attorney develops a customized asset protection plan for each client by assessing their individual circumstances and goals, evaluating potential risks, and recommending appropriate strategies.

How much does it cost to create an asset protection plan?

The cost of creating an asset protection plan varies depending on the complexity of the plan and the attorney’s fees.

How long does the asset protection planning process take?

The asset protection planning process can take several weeks to several months, depending on the complexity of the plan and the client’s needs.

What are the potential tax implications of an asset protection plan?

Asset protection plans may have potential tax implications, such as gift or estate tax consequences, and it is essential to consult with a tax professional before implementing any strategies.

What happens if a creditor tries to seize my assets?

If a creditor attempts to seize your assets, the protections established in your asset protection plan can help shield them from seizure.

Can I still access and use my protected assets?

Generally, you can still access and use your protected assets, although the terms and conditions of the protection may vary depending on the specific strategies employed.

What if I have already been sued or am facing legal action?

If you are facing legal action, it is essential to consult with an attorney as soon as possible to discuss your options for protecting your assets.

How often should I review and update my asset protection plan?

You should review and update your asset protection plan annually or whenever a major life event occurs.

What happens to my assets after my death if I have an asset protection plan in place?

The distribution of your assets after your death will depend on the specific provisions in your asset protection plan and any applicable laws.

Can I create an asset protection plan for my business?

Yes, you can create an asset protection plan for your business to protect your assets from potential legal liabilities.

Testimonials

our location

schedule a consultation

fields marked with an “*” are required

  • This field is for validation purposes and should be left unchanged.