Estate Planning/Asset Protection Question: My friend was telling me she just set up an LLC to put the deed of her house in which is separate from the LLC that holds her personal business. What is the importance of doing so?
Answer: In general its best to keep your personal assets separate from your business assets, however, that’s a fairly simple response to a much more complex matter. In order to obtain an answer that applies to your specific situation, you need to ask yourself what are your true goals and concerns. Are you attempting to plan for future distributions, acquire greater asset protection, limit your liability and so on? The answers to these questions will help you determine the best manner in which to protect, plan for and secure your personal and business assets.
So many people understand the importance of creating a personal estate plan, but fail to devise a plan of succession for their business. While it’s important for your personal estate plan to effectively coincide with your business succession plan, you simultaneously want to ensure that you have not opened up your personal assets to any exposure or liability that may be associated with your business. These can be rough waters to navigate without the assistance of an attorney who can point out all of the risks, benefits, and liabilities associated with the various options that may be available to you.
Remember that having an estate plan, as well as a plan of succession for your business that meets your family’s unique needs, goals and requirements not only gives you peace of mind, but ensures your loved ones’ financial future, wellbeing and happiness are planned for, protected and secure.
To discuss estate planning and asset protection further, you can contact Laura Bianchi at lbianchi@roselawgroup.com.
