What is the difference between asset protection and estate planning?

Asset protection and estate planning are both legal strategies used to manage a person’s financial and legal affairs. However, these two processes focus on different goals. Asset protection is the term used to describe the process of protecting a person’s assets from potential threats, such as creditors, lawsuits, and other legal claims. Generally, asset protection entails transferring assets from one person to another, such as through a trust or a shell corporation, in order to make them harder to access. On the other hand, estate planning is the term used to describe the process of making plans for how a person’s finances should be handled after they die. Estate planning includes creating a will that outlines how a person’s wealth should be divided, planning for taxes, and other legal issues. Though both asset protection and estate planning involve managing a person’s finances and legal affairs, they are separate processes. Asset protection focuses on protecting a person’s wealth while they are alive, while estate planning focuses on making sure their finances are handled properly after they pass away. In North Carolina, laws related to both asset protection and estate planning are in place to protect individuals’ financial and legal needs.

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What is the difference between asset protection and estate planning?

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