Asset management, not to be confused with wealth management, is the process of managing, protecting, and growing specific assets in order to maximize their value over time. Asset management can look different based on each individual’s specific long-term goals regarding retirement, estate planning, business growth, and more. The process of asset management may also include plans to strategically minimize tax liabilities on things like income, investments and estates, all while complying with both federal and state regulations.
Those looking to protect their assets may utilize a number of different structures like trusts, LLCs, and other tools like offer protection, minimize taxes, and simplify asset transfers.
Trusts
Revocable Trusts: A revocable trust is a legal structure that allows the grantor, or the person creating the trust, to retain control over their assets. They may also decide to update or revoke their trust, and a revocable trust allows for those privileges. Some of the main advantages of a revocable trust are that you generally avoid the
probate process and are offered limited protection from creditors. The ability to avoid probate makes the transfer of assets a smoother and more private process.
Irrevocable Trusts: While an irrevocable trust is not able to be modified once it has been established, it typically does provide greater asset protection and tax advantages than a revocable trust. Once assets are transferred into an irrevocable trust, they are no longer considered a part of the grantor’s estate, which helps reduce estate taxes. Like a revocable trust, irrevocable trusts also offer protection from creditors.
Specialized Trusts: Specialized trusts aim to serve a unique goal, like giving to a charity or caring for a family member with special needs. By utilizing these trusts, you can preserve your assets for specific objectives that align with your wishes. Two main types of specialized trusts include charitable trusts and Special Needs Trusts:
- Charitable Trusts: As the name suggests, these trusts are established specifically to support a chosen charity or nonprofit organization. This allows individuals to make contributions and even receive tax benefits. Donations in a charitable trust could offer income tax deductions and reduce your exposure to estate tax. Not only are families and individuals able to leave a legacy and support a cause they truly care about, but they are also receiving tax advantages.
- Special Needs Trusts: These trusts are meant to provide financial support to loved ones or family members with disabilities. The main benefit of a Special Needs Trust, or an SNT, is that it allows individuals to support their loved ones without compromising their eligibility to receive government benefits like Medicaid or SSI. The assets in an SNT are managed by a trustee to make sure that the funds are used for their intended purpose, to better the life of your loved one with a disability. An SNT provides long-term care for housing, education, and medical expenses.
Speaking with a qualified trust attorney can help you decide what type of trust is best for you and your estate. Both revocable and irrevocable trusts are great tools to help protect your personal assets and reduce your tax liabilities. They both also help ensure a smoother transfer of assets. By working with our Denver attorneys at Evans Case, you can help preserve and grow your assets and set future generations up for success.
LLCs (Limited Liability Companies)
An LLC is another powerful tool that helps protect your assets while also providing you with flexibility when it comes to taxes.
Liability Protection
For entrepreneurs working in high-liability industries, the protection of an LLC keeps your personal assets protected when business debts or lawsuits become an issue. An LLC allows you to separate your personal assets from your business assets, so that if you face any legal action, the only assets that are at risk are those belonging to the business.
Tax Flexibility
LLCs are often able to avoid corporate-level taxation because they are taxed as “pass-through entities.” This means that the business income is passed through to the employee’s personal tax return. LLCs also have the option to elect corporate tax treatment, including S Corp and C Corp options. An attorney can discuss with business owners to determine which of these choices is more beneficial and aligns with the business’s goals.
Trusts LLCs are a popular choice for business owners, individuals, and families who are interested in asset protection, tax benefits, and operational control. Our asset management attorneys will work with you to create a plan that ensures both protection and growth. Whether you are interested in growing your business or passing your wealth onto future generations, our team is available to help. Asset management goes beyond simply protecting your assets, and Evans Case is able to create a plan that meets your specific needs.
What Kind of Assets Can I Protect?
Whether you are focused on securely passing your assets onto future generations or you are a business owner wanting to shield your personal assets from your businesses liabilities, our attorneys can help you plan for protection. Our firm understands that each client has different needs and priorities. Some of the most important assets that our team can help Denver families and business owners protect include:
Real Estate
Real estate is often the most valuable asset that a family has. Whether a primary residence or a vacation home out of state, real estate is an incredibly important asset to protect. By using tools like an irrevocable trust or a family trust, families can protect their properties from potential lawsuits or creditors. Placing your real estate into a trust also allows it to pass on to your heirs much more smoothly.
Financial Assets
There are a number of different ways to protect various financial assets like your savings accounts, stocks, bonds, investment portfolios, and retirement funds from creditors and potential taxes. These are highly-valuable assets that can go toward retirement or education and inheritances for future generations. Tools like
irrevocable trusts and favorable tax-advantaged accounts can help families and individuals save on taxes and protect their funds from future liabilities.
Personal Belongings
Families may possess valuable personal items such as jewelry, pieces of art, or family heirlooms that are worth a significant amount. These items may hold deep sentimental value and families often want to make sure that they are passed on safely without being heavily taxed. Transferring valuables into a trust or covering them with comprehensive insurance policies can help avoid estate taxes and ensure that these items remain in the family.
Life Insurance and Retirement Accounts
These accounts are essential for income stability after retirement or emergencies. It is important for families to keep their funds preserved for their dependents, rather than opening them up to unnecessary taxes. Families are able to place life
insurance and retirement accounts into beneficiary-designated trusts, allowing them to control the distribution of funds and minimize tax liabilities.
There are a number of different assets that you may want to keep in your family, whether for sentimental or financial reasons. By working with a qualified asset management attorney, you can ensure that your high-value assets are protected and securely passed onto the next generation.
Our firm is also committed to helping businesses protect their assets and plan for success.
Real Estate
Business and commercial properties are often at risk from lawsuits. They are generally high-value assets needed to maintain stability and handle growth. By placing your business
real estate in an LLC or corporation, you can shield it from personal liability.
Financial Assets
Businesses revenue and investments are essential for providing financial stability during economic challenges. They are also necessary for funding growth and ensuring that the businesses continue running smoothly. Businesses can protect their financial assets by using separate business accounts, insurance policies and trusts that help maximize tax benefits.
Personal Assets Tied to the Business
Oftentimes, business owners will tie their personal investments and assets into the company. This goes beyond the financial investment needed to start a business and also includes assets like equipment and vehicles needed for the business. By utilizing an LLC or corporation, business owners can shield their personal assets from any business-related liabilities.
Employee Benefits and Retirement Plans
Many businesses and business owners will offer retirement plans and benefits that help attract and retain qualified employees. Business owners are able to place these funds in trusts or separate accounts to ensure that they are designated for retirement and employee benefits.
Our team of Denver asset management attorneys can help business owners protect their personal assets and prepare for growth. Whether looking to plan for future generations or to protect your personal assets from business liabilities, Evans Case is the firm that you can trust.
Risks of Improper Asset Management
If you don’t manage your assets properly, it can lead to a lack of financial security and may disrupt your long-term goals. Some of the biggest risks that come with improper asset management include:
- Legal Exposure: If you don’t place your assets into proper structures like trusts or LLCs, they will be left unprotected and may be vulnerable to potential lawsuits and creditors. An asset management attorney can help strategize and protect your assets from outside claims.
- Tax Liabilities: When your assets aren’t strategically managed, you may miss out on tax saving opportunities and end up paying more than you should. Our team can help you minimize your tax liabilities and preserve your wealth.
- Disputes: Assets that aren’t clearly managed may lead to disputes over inheritance. This not only creates turmoil within the family but delays the transfer of assets. An experienced estate planning attorney will ensure that your assets are distributed according to your wishes, with the ultimate goal of eliminating family disagreements.
- Value Depreciation: When assets aren’t actively managed, they can lose their value. It is important to review your asset portfolios and take advantage of growth opportunities. Our firm will work with you to help ensure your assets either maintain or increase their value over time.
Structured asset management is important for protecting your assets against these risks and meeting your financial goals. We will work with you to establish a plan that works for you, your estate, your family, or your business and provide continual, ongoing support to help you achieve financial security. Proper asset management is essential for protecting your wealth, preserving the value of your assets, and planning for your future. Trust Evans Case to help you protect your legacy.
Contact Evans Case Today for Your Asset Management Needs
Evans Case understands that managing and protecting your assets requires a customized, forward-thinking approach. Whether you are an individual or a family that is looking to protect your assets for future generations, or a business owner who wants to keep your personal assets separate from your business, our knowledgeable team of Denver attorneys will help tailor a plan that fits your needs.
Not only are we able to help you come up with a plan to protect your assets, but we are determined to help reduce tax liabilities and structure your assets for generational wealth. Partnering with Evans Case and our asset management team means that you have a trusted, compassionate attorney by your side at all times, providing ongoing support that keeps your assets protected and meets your long-term goals.
Reach out to our Denver team of asset management attorneys today to see how we can help you start building your future.
