What is the difference between asset protection and estate planning?

Asset protection and estate planning are both ways to protect a person’s assets. While the two concepts are related, they work in different ways. Asset protection focuses on minimizing the risk of assets being taken away in a legal action, such as a lawsuit. Asset protection planning involves setting up certain legal structures, such as trusts, to protect assets from being taken away to pay off creditors or lawyers. Estate planning, on the other hand, involves planning for the distribution of a person’s assets after death. This often includes setting up a will or trust to ensure that assets are distributed according to the wishes of the person who established the plan. Estate planning also includes other aspects of end-of-life planning, such as making health care decisions and appointing a guardian for children. In summary, asset protection and estate planning are both important elements of financial planning. Asset protection focuses on protecting assets and minimizing risk in the event of a legal action, while estate planning focuses on ensuring that assets are distributed according to the wishes of the asset owner after death. In Washington, both asset protection and estate planning are most effectively done with the guidance of an experienced attorney.

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What is the difference between asset protection and estate planning?

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