Protecting One’s Assets Before Retirement

Although many people are tightening their belts and times are tough many near retirement age can still look forward to a long and comfortable retirement. This is due to the sound financial assets they acquired during their years of work.

A number of attorney’s offices are receiving an increasing number of clients asking about “asset protection for the elderly. In most cases the assets include a primary residence (mortgage has been paid off), a pension fund, perhaps some investments in the stock market and other types of savings.

One great benefit about living in this time period is the ability to enjoy life after retirement. Many people have a number of golden years left. One must always prepare for the worst. If they should become incapacitated either mentally or physically, who will take care of their assets? A power of attorney is recommended. This is a person who is either a close friend of the individual or a trusted member of a bank or law firm. The “power of attorney” is then put into position to make financial decisions on the behalf of the individual who is incapacitated.

Attorneys are often asked to give advice in dealing with the cost of social care. The main interest is to keep the depletion of their portfolio to a minimum with the least outlay of money.

Last but not least is a concern of almost everyone you speak to. After a person has worked hard all of their life their assets may not go to the family members but to the state. The rising cost of housing has led many people to be entrapped by the inheritance tax (IHT). There are a number of ways to minimize the liability of IHT. Ask an attorney.

The key to asset protection for older people is to plan early to formulate wills and other appropriate legal documentation so that they can provide adequately and tax efficiently for themselves and their heirs.

For young and old the solution to asset protection is to plan early. Make sure you have a will. Retain all of your documents and continue to check on tax breaks that you are entitled to.

Don’t let the fact that you failed to plan early put you off. Get in touch with your attorney now and the chances are he will still be able to assist.

If you fail to plan then you plan to fail. One must plan early for this. Find an attorney you trust and more than likely he will be able to help you.