Having significant wealth can be a blessing, but it also comes with risks in many cases. If you are an affluent individual in the Los Angeles area, you may need to take extra steps to ensure your assets are protected and preserved. If you have a lot of assets, there are several ways to protect them from financial predators, such as creditors and ex-spouses. However, if you don’t plan properly ahead of time, your fortune could be at risk of being lost.
As you can imagine, estate planning is important for everyone, but it is critical for high-net-worth individuals. This post will examine some strategies a Los Angeles area estate planning attorney may use for wealth preservation for high-net-worth individuals.
High Net Worth Planning Strategies
- Wills and Trusts. Wills and trusts are valuable tools for ensuring that your assets are distributed according to your wishes after your death, but they also require careful drafting by an experienced attorney. An experienced attorney can help you ensure that your will or trust is drafted enough so it can be followed your death.
- Asset Protection. High-net-worth individuals often have large sums of money invested in stocks, bonds, real estate, and other assets that could be at risk if they were made vulnerable through litigation or lawsuits filed against them. A Los Angeles area estate planning attorney can help you set up an asset protection plan that protects these assets from being seized by creditors or others who may want to access them after your death.
- Grantor Retained Annuity Trusts and Spousal Lifetime Access Trusts. When high-net-worth individuals set up their trusts, they often use Grantor Retained Annuity Trusts (GRAT) or Spousal Lifetime Access Trusts (SLAT). These trusts allow the trust creator to receive income from the trust while still alive and then pass on what’s left to their heirs upon death with minimal tax liability.
- Gifting. If you want to make sure that some of your assets go directly into a trust but also want them accessible by someone else, consider gifting part of it beforehand so they have access while also avoiding taxes on those assets when they pass away.
Contact The Law Offices of Michael K. Lanning, APLC
When it comes to the future, you must have a planning professional who understands your needs and goals.
If you’re a high-net-worth individual living in or around Los Angeles, the Law Offices of Michael K. Lanning, APLC, can help you plan for your future by helping you select the best possible strategies. Whether you want to maintain your lifestyle or increase it, our attorneys will work with you to evaluate your current situation and create a plan that ensures your wealth and peace of mind. Contact us at 310-820-1600 or go to our website to learn more and set up a consultation.
We serve West Los Angeles, Santa Monica, Pacific Palisades, Manhattan Beach, and the surrounding Los Angeles communities.