Hello, this is Richard Morgan at Morgan and Disalvo, and this is part of our back to the basics video newsletter series. This topic is third-party asset protection. There are two types of asset protection, there’s first party asset protection, and third-party asset protection. First party asset protection is the desire to protect your assets from your problems. Third party asset protection is your desire to protect your assets from someone else’s problems.
Now, state law, public policy is pretty much against first party asset protection. The government basically believes in general, in most states, that your assets should be subject to the claims of your creditors and your problems. However, third-party asset protection, which is where our sweet spot in estate planning, that’s where we allow you and the state is fine with it, we allow you to protect your assets from your beneficiaries problems.
So, for example, by doing proper planning, you can protect your assets from your spouse’s problems. You can protect your assets from your kid’s problems. And on and on and on. It’s one of the great benefits of estate planning.
This is Richard Morgan at Morgan and Disalvo.