Asset preservation and estate planning may be more important than ever in today’s economy. The IMF recently observed that by the year 2016 there is a good possibility China’s economy will surpass America’s. The IMF, was formed in 1945 to help stabilize the world economy. It describes itself as “an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” They are not the only ones seeing trouble on the horizon for the U.S.
Ordinary American’s Estates in Jeopardy
John Mauldin, a financial analyst and the author of ENDGAME: The End Of The Debt Supercycle And How It Changes Everything, says that” the U.S. must confront the fact that it has borrowed too much and must cut back.” He notes that “The longer the Federal Reserve sticks to its current policy, the more likely that policy will end in tears.” The U.S.’s $1.6 trillion-a-year deficit must quickly be cut, or the U.S. will face a debt crisis. These cuts are going to be painful and ordinary American’s estates will be smashed by the impact.
Currently each citizen’s share of this U.S. debt is $52,987.71. What this means is that ordinary Americans will pay higher taxes and have significantly reduced Medicare and Medicaid benefits. So when I ask, “Is your asset preservation and estate planning in place?” it is a serious query.
I can’t tell you where to invest or how, but I can tell you that if you have your asset preservation in place, in other words, you are prepared with the proper estate planning and asset protection, the consequences to you for the country’s reckless spending will be less severe.
Asset Preservation and Estate Planning
What is Asset Preservation and Estate Planning? Your estate includes all of the property or assets you own. This means not only your tangible personal property such as your home and your car, but it also includes intangible property such as bank accounts, stocks and bonds. Asset preservation involves not only controlling your property, but also how you hold property to get the best tax advantages and the most personal protection.
Interested? You should be. Why would you leave yourself vulnerable to more taxes than you need to pay? You should do your asset preservation and estate planning today to get the maximum lifetime benefit from your asset preservation plan.
A client recently came to me with several real properties underwater. He had planned to fix and flip these properties to help fund his retirement. Unfortunately the housing market was in a downturn and he owed more than he could sell these properties for. He had not paid attention to any asset preservation techniques and he was losing everything. Yes I was able to help him, but I felt bad for all he was losing.
In my book, Protecting Your Financial Future I talk about, “the rich kid in your high school class.” He lives the good life. He will not bear the brunt of America’s debt crisis. You may find yourself thinking, “How can he do that? I’m smarter than he is.” You probably are smarter than he is. The catch is, he was born into a family that already had a legal asset preservation and estate planning structure in place.
Is your asset preservation in place?
The question to ask is, “Is your asset preservation in place?” It is astounding the difference an asset preservation and estate planning structure makes. Why? Remember the rich kid? When anyone in his family makes a mistake, or encounters a problem they fall back onto the legal structure. They are protected. When it comes tax time, they pay, but it is usually less per capita, because every part of this family empire is structured for asset preservation and to save taxes.
By Lee Phillips