ASSET PROTECTION SERVICES

TuckerAllen offers a variety of asset protection services to protect your assets and beneficiaries from undue taxes, creditor or divorce claims, and Medicaid take-backs. The law, regulations, and enforcement of asset protection provisions are frequently changing due to economic and political pressures. We take a conservative approach to our protection services, with the goal that our provisions will withstand legal scrutiny as the asset protection landscape continues to shift.

Types of Asset Protection Services:

Estate Tax Planning

  • Revocable Living Trusts with Estate Tax & GST provisions
  • Gifting Trusts
  • Irrevocable Life Insurance Trusts (ILITs)
  • Strategic Gifting Plans

Creditor Protection Trusts

  • Domestic Asset Protection Trusts

Medicaid Planning

  • Medicaid Asset Protection Trusts

Our Team Approach:

Oftentimes a financial planner, personal banker, trust company, or CPA works closely with us to create and implement your asset protection plan. We welcome their input, since the more information we have, the better we can serve you. Your team can join us in the initial meeting in person or virtually, or stay connected via email and phone calls.

Our Stance on Ethics and Responsibility:

TuckerAllen prides itself on providing high-quality asset protection services in an ethical manner which meet our clients’ goals, comply with the law, and provide flexibility for the future. Many law firms do not understand the intricacies of asset protection and just view it as a lucrative upcharge in the estate planning process, with no ultimate benefit to the client or even in frustration of the client’s goals.

At TuckerAllen, we are committed to providing our clients with a comprehensive overview of the asset protection process, including the advantages and drawbacks, and how it is suitable (or unsuitable) for our client’s situation.

Estate Tax Planning

While the current federal estate tax threshold is around 12 million dollars per person in 2023, estate taxes currently are or may become an issue for many of our clients. This may be because they earned or inherited significant assets, live in a state with a state-level estate tax, they have failed to port a deceased spouse’s exemption amount by filing the appropriate tax forms, or simply because politicians may change the current estate tax threshold without notice.

Depending upon the number and amount of assets the client has and their marital status, addressing estate tax issues can be handled through various types of irrevocable trusts, revocable trust provisions, and the formation of a strategic gifting plan.

Revocable Living Trusts with Estate Tax & GST Provisions
The first place to begin addressing estate taxes is in your revocable living trust. We will include provisions to utilize portability and make suitable tax elections, as well as more complex provisions to allow for the continuation of a strategic gifting program and funding of marital shares and disclaimers. These types of provisions are included as an add-on to our standard trust package fee.

Gifting Trusts
These trusts are ideal for individuals who want to make use of their gift tax exclusion to gift assets to someone, such as a grandchild, but want their gift to have a suitable structure to prevent mismanagement. You can name a trustee to oversee trust distributions, put limitations on what the trust assets can be used for, and even provide backup beneficiaries if the recipient passes away. This type of trust is a standard irrevocable trust.

Irrevocable Life Insurance Trusts
An ILIT is oftentimes the easiest way to remove assets from your gross estate to avoid estate taxes. A new life insurance policy can be taken out, or a current policy transferred, to an irrevocable trust which directs the proceeds upon your death to your beneficiaries. If the appropriate steps are followed and maintained, assets in an ILIT will not be included in your gross estate and will pas tax-free to your beneficiaries upon your death. We can assist in setting up and maintaining your ILIT as Trustee.

Strategic Gifting Plan
Gifting strategies allow you to maximize the amount of assets which will pass tax-free to your beneficiaries now, before your passing. Sometimes these will be outright gifts in compliance with the annual gift tax exclusion amount, others may be into Gifting Trusts, and others may be directly to vendors for educational or medical expenses. We will work with you to create a plan to make the most of your gifting.

Domestic Asset Protection Trusts

Domestic Asset Protection Trusts are irrevocable trusts set up to protect your assets from a spouse, lawsuit, medical bills, or potential creditors. The most common reasons why clients set up DAPTs is to protect a recent inheritance or protect assets from high-risk endeavors. Note that DAPTs may not be set up to defraud creditors or your spouse, and trusts set up for such a purpose will not survive legal challenge. If a potential creditor currently exists, or you are on notice of a lawsuit, it is too late to set up a DAPT.

For example, John is a successful doctor but wants to protect his assets from any malpractice claims, he can set up a DAPT and transfer part of his assets he does not use for his daily life into the trust. His friend manages the trust for him and is authorized, but not required, to make distributions to John and his family.

In order to have the greatest chance of surviving legal challenge, the less benefit and control over the assets you should have. This generally means you, your spouse, or your child should not serve as Trustee, and distributions to you should only be made if absolutely necessary, and the trust should have its own EIN number and tax return. We can set up DAPTs and other irrevocable trusts for a flat rate fee, and we can also serve as independent trustee.

Medicaid Asset Protection Trusts

Medicaid Asset Protection Trusts (MAPTs) are used to shield assets from being counted in a Medicaid Application. Typically, they are suited for clients with limited assets and income

For example, Mary’s family has owned her family farm for generations, but has extremely limited assets other than the farm.

In order to have the greatest chance of surviving legal challenge, the less benefit and control over the assets you should have. This generally means you, your spouse, or your child should not serve as Trustee, and distributions to you should only be made if absolutely necessary, and the trust should have its own EIN number and tax return. We can set up DAPTs and other irrevocable trusts for a flat rate fee, and we can also serve as independent trustee.

 

How Much Does Asset Protection Cost?

An initial estate planning and asset protection consultation with an attorney is complementary. Your attorney will help you decide what documents or packages you need. We offer published, flat-rate pricing for almost every estate planning service. View our complete pricing list here. Typically our asset protection services will fall under Tax Planning or Irrevocable Trusts.

We also offer a 12-month, zero-interest payment plan for estate planning documents. Learn more about the additional terms and conditions.

 

Schedule Your Will or Trust Consultation Today.

Come on in. Let’s talk. There’s no preparation necessary and you don’t need to bring any paperwork – just bring yourself and your questions. During your consultation, we’ll help you decide which services are right for you and your family. Click below to book your appointment at one of our many greater St. Louis area locations.

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(314) 335-1100