Keeping Control of Your Assets

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Keeping Control of Your Assets: A Guide to Integrated Planning

For those who have worked hard to build a secure future, the primary goal of planning is simple: to stay in control. You want to ensure your assets are protected for your own needs and are eventually passed on to your loved ones according to your exact wishes. This requires more than just a will; it requires a cohesive, integrated plan where every component works in harmony.

The Biggest Threat to Control: A Fragmented Plan

One of the most common mistakes we see is a lack of continuity. A person might have a bank account owned jointly with one child, an investment account with different children named as beneficiaries, and a life insurance policy naming someone else entirely. This hodge-podge of asset titling will almost always undermine a well-drafted will or trust.

It is a critical and often misunderstood fact that how you own an asset will trump the instructions in your will. Jointly owned accounts and beneficiary designations are legal contracts that dictate where the money goes upon your death, regardless of your other documents. A disconnected plan leads to confusion, conflict, and a complicated estate administration process for your family.

The Solution: A Cohesive, Trust-Based Plan

For many families, a revocable living trust is the most powerful tool for maintaining control and creating a cohesive plan. A trust acts as a central hub for your assets, allowing you to:

  • Maintain Full Control During Your Lifetime: As the trustee of your own trust, you manage your assets exactly as you did before.
  • Plan for Disability: A trust allows you to name a successor trustee to seamlessly manage your affairs if you become incapacitated, avoiding a public and costly guardianship proceeding.
  • Provide Asset Protection for Your Heirs: You can leave your property in a trust for your spouse or children, protecting their inheritance from potential creditors, lawsuits, or a future divorce.
  • Deter Legal Challenges: A trust is a private contract and is much more difficult to challenge in court than a will. A well-drafted trust with a “no contest” clause provides a powerful deterrent to unhappy family members.

The Foundational Documents for Lifetime Control

Even with a trust, it is essential to have a set of robust, well-drafted foundational documents. As we age, Powers of Attorney become the most critical tools for protecting our assets and independence.

Many people have a “short-form” statutory Power of Attorney that they created years ago. These documents provide very limited authority and are often insufficient for the strategic asset protection moves required to plan for long-term care. To effectively plan for benefits like Medicaid, Special Assistance, or the VA Pension, you need a stronger, more comprehensive document.

A truly effective comprehensive plan to protect your assets ensures that every document and every asset title works together to achieve your goals. Call our office at (919) 256-7000 to schedule a consultation.