Common Mistakes in NJ Asset Protection Planning

NJ asset protection,

Asset protection is an essential aspect of estate planning. Protecting your assets is critical to preserving your estate and your legacy. On the other hand, the consequences of making a mistake in your asset protection plan can be disastrous. Here are the five most common mistakes made in asset protection planning:

  1. Doing Nothing

There is a common misconception that asset protection is only for the super wealthy. This is not true! In a lot of ways, asset protection is more important for the average person than it is for millionaires, whose financial resources can typically absorb many potential issues. If you have any assets, you need to take steps to protect them for yourself and your loved ones. Not taking the time to protect your assets can be financially devastating. Often, people wait until it is too late to try to protect their assets. If you are overwhelmed by the process of asset protection planning, or don’t even know where to start, the best thing to do is find an attorney experienced in asset protection.

 

  1. Working with the Wrong Attorney

Going off of our previous point, it is important to work with an attorney while you are creating your asset protection plan. Not all attorneys have experience in asset protection. Working with an attorney that is experienced with the many ins and outs of estate planning is the key to a great asset protection plan. These skilled experts know the NJ estate planning and asset protection tools that are best for each individual situation. They can foresee potential problems and know what future creditors will be looking for. With an experienced attorney, you can rest easy knowing your financial future is secured.

 

  1. Relying on Insurance Alone

While it is a great idea to include insurance in your asset protection plan, insurance itself cannot replace an asset protection plan. Insurance can protect you and your assets in very specific circumstances laid out in your insurance coverage plan. There is also the risk that your insurance company could drop you, coverage could be denied, or that your insurance company will not be able to cover all of your claims. An asset protection plan, however, will protect you and your assets in any circumstance.

 

  1. Using One Size Fits All Plans

No two estate or asset protection plans will be the same. It is important to assess the unique details of your situation to determine what kind of plan is best for you. Your specific goals will not look the same as those of your neighbor or your friend. Planning tools that might work for one person will not be as suitable for someone else. An experienced attorney will be able to create a plan that is custom fit to your needs so you can use the legal options that are right for your goals.

 

  1. Not Making Timely Revisions

Once you have an asset protection plan in place, you will need to make revisions often. The legal regulations that cover asset protection techniques change from year to year. Your asset protection plan will also have to change to reflect your changing life. The addition of a new family member, a divorce, or a job change are just a few of the life events that could affect your asset protection plan. If you do not consistently update your plan, it may become inconsistent or obsolete and therefore ineffective in protecting you and your assets. Reassess your plan regularly and notify your attorney of any changes as soon as they happen.

 

Veitengruber Law is experienced in NJ asset protection and estate planning. We provide personalized strategies to fit your specific needs. Our attorney and legal team will sit down with you to go over your goals and explain your legal options in plain language. We want our clients to be able to make informed decisions about their financial futures. Call us today at 732-852-7295 for your free, no-obligation consultation.

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