Inflation in California has had a major impact on families in 2022. According to the California Department of Industrial Relations, the Los Angeles and Orange Country area is experiencing an 8.6% increase in the consumer price index from the last year. If you want to preserve your retirement fund, an estate planning attorney in Los Angeles can help.
Anyone who is concerned about inflation and tax planning should speak to an expert who can help them make the most of their savings. Having an expert handle your estate matters can help you adapt to rising inflation and the higher cost of living.
Estate Planning to Safeguard Retirement Assets in a Tough Economy
Traditional estate planning allows you to safeguard your assets, including retirement accounts and trusts. Estate planning attorneys help their clients make the most of their assets. Retirement accounts have many tax benefits and unique features that make them appealing as part of estate planning. They can reduce estate taxes, keep liquid assets safe, and more.
Estate tax planning can save your loved ones significant money. Living trusts are a popular way to transfer assets to beneficiaries and avoid probate. An attorney can provide trust administration services, including post-death administration to protect your minor beneficiaries.
Retirement accounts can also bypass the frustration and expense of probate law. Creating a retirement trust is one of the most effective ways to keep your assets safe. It can also be an important part of your business planning strategy.
For example, if you put the real estate, bank accounts, and other important assets into your retirement plan trust, it will be safe regardless of any other financial strife you are experiencing. In an uncertain world, this kind of security can put your mind at ease.
A trust and estates attorney can draft a private retirement trust that includes clear, valid documentation that will hold up in court. It will make it clear that your trust is intended to serve as a retirement plan.
Estate planning is an excellent investment not just for your beneficiaries, but also for your post-retirement. Many law offices specialize in maximizing retirement plans. Working with a legal professional is an investment that can improve your retirement life in the long run.
What is Exemption Planning?
Exemption planning is an essential part of estate planning that includes finding legal exemptions for the assets in your estate. This allows you to maintain your wealth and ensure a comfortable retirement.
Finding application exemptions means you can keep certain assets untouchable to creditors. That means even if you experience significant financial hardship, your hard-won assets will be safe. This type of planning is especially useful for business entities.
An estate lawyer from a trusted law firm can help you make full use of the laws that are in place to protect assets from probate litigation, lawsuits, and more.
High-net-worth individuals can especially benefit from this type of planning. By planning ahead with a trusts and estates lawyer, you will safeguard your assets and ensure that even a bad run of luck won't decimate your savings and leave you in a tough place in your twilight years.
An Overview of the California Code of Civil Procedure Section 704.115(b)
Section 704.115(b) states that private retirement plans are exempt from creditors. This means that all assets held in a private retirement plan are safe and can be relied upon regardless of the economic climate. This exemption is also available to U.S. residents who aren't citizens.
Private retirement plans include union plans, profit-sharing retirement plans, and certain self-employed retirement plans. These plans must be designed expressly for retirement purposes in order to fall under this part of the California civil code.
The California Supreme Court has set the precedent that this section of code is interpreted in such a way that generally favors debtors in both state and federal courts.
An estate planning lawyer can help you determine if your retirement plan fits into this category. If it doesn't, they can help you get one that does qualify as part of their estate planning services. They can draft documents that will serve as documentation in case you ever go to court over debt.
How Private Retirement Plans Can Serve as a Retirement Asset Protection?
In a tough, unpredictable economy, retirement plans can ensure that you have a high quality of life as a senior citizen. Private retirement plans are reliable and offer a broad range of benefits, particularly asset protection.
Asset protection keeps your trust property safe from civil suits and bankruptcy issues. This is especially valuable for owners of limited liability companies and other public figures who are more at risk of lawsuits and bankruptcy.
For example, your Los Angeles trust lawyer can write up a trust that includes your most vital assets. If you are involved in a personal injury lawsuit, or if you must declare bankruptcy, those assets will be left completely untouched. They will only be able to reach your liquid assets, which may even serve as a deterrent for litigious bad actors.
Using a trust to protect your assets also reduces the likelihood of estate litigation and other issues that can prevent beneficiaries from receiving their assets in a timely manner. An estate planning attorney can offer insight into the unique benefits of trusts and draft estate plans that take full advantage of them.
Establish a Secure Retirement Plan with a Trusted Estate Planning Attorney Los Angeles
Your retirement fund is an essential part of any estate plan. With the right law firm, you can ensure a comfortable life and independence from family members. A qualified estate planning attorney in Los Angeles can be your greatest ally.
At McKenzie Legal & Financial, we provide financial and legal services to protect your finances from the potentially devastating effects of inflation in Southern California. We specialize in Los Angeles estate law.
Our attorney will provide personalized advice for any legal issue you encounter. He also has years of experience providing financial advice, making him uniquely qualified to handle your estate planning needs. To request a consultation, contact us at 562-594-4200 at McKenzie Legal & Financial today!
