What is the difference between asset protection and estate planning?

Asset protection and estate planning are both legal tools that help people protect their financial assets. The main difference between the two is that asset protection is a preventative measure that helps protect assets from creditors or legal judgments before they occur. It is not specifically designed to provide for the distribution of assets after someone passes away. Estate planning, on the other hand, focuses on providing guidance on how assets should be handled and managed after a person’s death. It includes asset protection as part of the process, but also includes things like drafting a will, setting up trusts, and determining how taxes should be handled. In Indiana, asset protection focuses on shielding the financial assets of a person before their death. This is done by creating certain legal structures to protect assets from creditors, lawsuits, and other claims. These structures can include titling assets in certain ways, setting up trusts, or creating special accounts to protect assets. Estate planning in Indiana helps people make the most of their assets by providing guidance on how they should be managed and how their money should be distributed after their death. This includes understanding how taxes may affect an estate, setting up trusts, determining how assets should be allocated, and deciding who will be in charge of managing this process. Overall, asset protection and estate planning are two distinct fields of law that work in tandem with one another to ensure that a person’s financial assets are handled properly. Asset protection focuses on protecting assets before death, while estate planning focuses on what happens after death.

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What is the difference between asset protection and estate planning?

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