Asset protection is not something most people think too deeply about. Most of us are busy trying to accumulate assets with the cost of living in Honolulu—or in Hawaii generally—being what it is, to give considered thought to the importance of protecting what we have.
Consider taking these four steps to protect your assets:
1. Get the right insurance coverage
Life insurance, disability insurance, auto insurance, homeowners insurance, health insurance, and long-term care insurance are all ways you can protect your financial security by shifting most of the risk of an accident or unplanned event to someone else – your insurance company.
2. Delay Social Security benefits
One of the major benefits of Social Security is that it is one of the few sources of revenue that can withstand inflation and downturns in the stock market. Delaying benefits for at least until you are at full retirement age--and up to age 70 if possible--will maximize your payout and that of a surviving spouse.
3. Have an estate plan
Creating an estate plan helps you provide for your family after you are gone in the most tax-advantaged way. Use tools like trusts to minimize taxes and avoid probate so your assets will pass automatically to your heirs without getting tied up in court. Another important aspect of estate planning is assigning powers of attorney and drawing up an advance medical directive so your wishes are respected when it comes to your own health care.
4. If you are a business owner, choose the right structure
If you own a business, choosing the right business structure for personal liability protection and taxation can dramatically affect your financial circumstances.
This article is a service of the Law Office of Keoni Souza, LLC, an estate planning law firm in Honolulu, Hawaii. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session, ™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by contacting our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.
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