Tax planning is always important, but it serves you best when combined with an asset protection plan.

Saving you tax dollars does little good if those saved dollars end up in the hands of your children’s creditors or lost to your son or daughter-in-law after a divorce from your child. You need effective tax planning combined with an asset protection plan.

A good estate plan will provide options to protect you, your spouse and all your heirs from creditors, divorce and bankruptcy. You have many inexpensive asset protection options available.

What is My Estate?

If you live in Philadelphia, understanding what makes up your estate is an important question because the Pennsylvania Inheritance Tax is potentially levied on every part of your Philadelphia estate. What is in your estate is sometimes not an easy answer. When people refer to their estate, they are sometimes talking about their Taxable Estate and other times they are speaking about their Probate Estate. In general, your Estate includes everything that you own in your name, such as your Philadelphia residence, your bank accounts and your retirement account. But it could also include assets that are not in your name, such as your Philadelphia rental property that you might have placed into a Revocable Trust or Living Trust. Other assets, such as your Atlantic County shore home might be in your name, but Pennsylvania will not include that property as part of your Philadelphia Taxable Estate…but New Jersey will consider it part of your New Jersey Taxable Estate. You can see that this can become a bit tricky. If you become Peter Klenk’s client, he will spend time with you to understand your estate, both Taxable and Probate, because a thorough understanding of your assets is essential to developing a proper estate plan.

How Can I Keep My Money in the Family?

Almost every Philadelphian is concerned about their heirs losing their inheritance through divorce, law suits or other legal entanglements. Peter Klenk will work with you to find the best option to help make sure that protective walls are placed around your assets. He will also show you how to make sure that, if your child should die before using all of his or her inheritance, that your money passes to your grandchildren rather than your son or daughter-in-law. Philadelphia Estate Plans can provide many protections so your wishes are respected, and Peter Klenk can explain them all to you.