What is the difference between asset protection and estate planning?

Asset protection and estate planning are both important financial planning tools that help individuals and families in Wisconsin protect their money and property. While both are important, they serve different functions. Asset protection is a series of legal techniques used by individuals and businesses in Wisconsin to protect assets from creditors and other potential losses. This could include setting up an LLC, which is a business entity that provides limited liability protection, or transferring assets into trusts. Other common asset protection strategies include titling assets in the name of a spouse or registering them in a Foreign Asset Protection Trust. On the other hand, estate planning is the process of preparing for the transfer of one’s assets upon death. This often includes creating a will, establishing trusts, setting up health care proxies, preparing power of attorney documents, and establishing guardianships for minor children. Estate planning also includes asset protection, as protecting assets from potential losses during one’s lifetime is a key part of estate planning. However, asset protection can also exist without estate planning, such as when a business owner in Wisconsin sets up an LLC to protect himself or herself from potential lawsuits. In conclusion, while asset protection and estate planning are both important financial planning tools, they serve different functions. Asset protection protects assets while estate planning prepares the transfer of assets upon death.

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What is the difference between asset protection and estate planning?

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