Aurora Estate Planning Attorney: Latino Estate and Asset Protection Tips

 Posted on February 08, 2023 in Estate Planning

Aurora Wealth Management Lawyer: Assisting Latinos with their wealth, estate planning, and asset protection legal strategies.

Peace of Mind Asset Protection, LLC specializes in estate planning, asset protection, and wealth management for high-end real estate and business professionals in the Latino community. Our estate planning attorneys and staff empower Latinos, give them high-level expertise and responsiveness, and guide families on their wealth management and asset protection goals.

This article will discuss the basics behind Latino empowerment and the estate planning tools required to create a solid estate plan. A Living Trust is the first legal document to make a good estate planning structure

Pros and Cons of Living Trust

A Living Trust or a "revocable Living Trust" is a legal document where the trust's creator appoints a trustee or co-trustee to manage their affairs in case of legal incapacity or death. For example, two spouses set up a Living Trust to create an estate plan in case of their death

Unlike a Last Will, a Living Trust avoids the probate process and has a smooth transition upon death. The Living Trust also has a spendthrift provision, protecting beneficiaries from a divorce or creditor concern. For example,  Jorge & Sue Rodriguez create a revocable Living Trust called "The Rodriguez Trust," and Jorge and Sue pass away, leaving an inheritance to their daughter, Marissa. Marissa is married to Hector, and Marissa and Hector are going through a divorce in Aurora, Will County (Illinois). A Living Trust protects against in-laws benefiting from a spouse's inheritance. Proceeds from Marissa's inheritance would be covered under the Living Trust's spendthrift provision, which saves a beneficiary's inheritance from creditor concerns. The Living Trust prevents obstacles from interfering with the intrafamily wealth transfer process. In summary, a Living Trust is a powerful tool for transferring a family's wealth from generation to generation

Pour Over Will

A Pour Over Will is the second legal document for an effective estate plan. A Pour Over Will differs from a Last Will and Testament because the trust's creator did not transfer their assets into the Living Trust's name. Trust funding is critical, which means that the owners of a Living Trust must re-title their assets into the Living Trust's name, such as their real estate interests or bank accounts

A Pour Over Will is a catchall exception that transfers one’s inheritance into their Living Trust when they have failed to re-title all of their assets into the Living Trust's name. The Pour Over Will will automatically transfer any estate outside the Living Trust's name into their Living Trust. The Living Trust provides privacy protection, unlike a Last Will and Testament

A Testament is a public document. The Living Trust is a private document where only the beneficiaries are entitled to see the contents of the trust agreement. A Pour Over Will and a Last Will differ because the two legal documents have different goals. They will outline the distribution of one's assets upon death. The court must approve the Will through probate court

In contrast, a Pour Over Will transfer one's assets outside of probate court disclosure. Probate avoidance creates a smooth transition upon death or incapacity. A Living Trust avoids court proceedings and court oversight. Most people are unaware that Last Wills and testaments must go through Probate Court. The Pour Over Will minimize court involvement by automatically transferring one's assets into a Living Trust. A Pour Over Will preserves the privacy benefit of a Living Trust and shields the asset ownership and beneficiaries of one's estate.

Powers of Attorney: Property and Healthcare

The third type of legal document is a power of attorney for property and healthcare. An individual appoints a person to make financial and healthcare decisions in case of incapacity. The premise of a power of attorney is to establish a family or friend to make important health and financial decisions when they are incapable of making their own decisions.

In addition, the power of attorneys provides a legal strategy to prevent court proceedings.

Such as guardianship proceedings, where the court meddles in the legal affairs of a person. A guardianship court proceeding is a division of probate court where the court must appoint a guardian and approve estate transactions before distribution.

Asset Protection 

The fourth legal strategy is asset protection planning. Asset protection plans devise legal strategies to improve financial security and protect family wealth. Asset protection protects against lawsuits, taxes, and creditor concerns. In addition, asset protection strategies prevent one case from dissipating one's assets

Asset protection plans often involve using limited liability companies and varying types of trusts. Limited liability companies are known as "LLCs" because they provide liability protection against creditor concerns. Limited liability protection limits creditor concerns to the business assets such as investment real estate and other business assets.

At Peace of Mind Asset Protection, LLC, we will conduct a risk assessment and recommend legal strategies to minimize one's risk profile. For example, liability planning reduces and eliminates liability risks. In addition, asset protection produces wealth preservation by preserving one's assets

Wealth preservation is the process of education and decision-making that improves the security of one's financial support. Finally, wealth management and preservation passes one's financial assets to future generations. Wealth management empowers Hispanic and Latino families by creating strategies to pass down one's hard-earned wealth to their children and grandchildren

According to the federal reserve, the average Black and Hispanic or Latino households earn about half as much as the average White household and own only about 15 to 20 percent as much net wealth. https://federalreserve.gov/econres/notes/feds-notes/wealth-inequality-and-the-racial-wealth-gap (October 22, 2021). Wealth inequality is substantial, and effective estate planning can begin to reverse the trend in Hispanic or Latino households.

Aurora Hispanic Estate Planning Lawyers: Eliminating the Wealth Gap for Hispanic and Latino Families

Peace of Mind Asset Protection, LLC provides estate planning and asset protection legal services to Hispanic and Latino families. Additionally, we provide financial empowerment for Hispanic and Latino householders designed to decrease the wealth gap in the Aurora, Plainfield, Joliet, Montgomery, Oswego, and Yorkville areas.

Sources

https://federalreserve.gov/econres/notes/feds-notes/wealth-inequality-and-the-racial-wealth-gap (October 22, 2021).