Risks of a Prenuptial and Advantages of a Trust by @AZanswers
By Ann Zuraw 0 on Risks of a Prenuptial and Advantages of a Trust by @AZanswers
by Ann Zuraw | Featured Contributor
You spent years working hard to build your business and have acquired a substantial amount of assets. Your wedding day is approaching, and you’re excited about your future, but have you thought about protecting your assets in the event you become a statistic. Currently, 50% of marriages fail.
Should you keep assets separate and will you disclose the total value of your personal assets? What if you become a statistic of a failed marriage, will you be protected? Or are you leaving yourself vulnerable to losing half of your property?
Many individuals concerned about protecting assets consider a prenuptial agreement, but not many follow through due to its unromantic connotation. Did you know a prenuptial agreement discloses the value of both of your assets and it’s not easy to enforce or sign?
In a second marriage, a prenuptial agreement would not protect you from having to pay for your spouse’s medical expenses. Alzheimer’s care can cost upwards of $9000 a month at a 24-hour care facility and can quickly drain your assets.
NOW THERE IS A BETTER OPTION, consider using a “Domestic Asset Protection Trust.” It will protect and control your assets using a situs (the place to which, for purposes of legal jurisdiction or taxation, a property belongs) of South Dakota, and you do not have to be a resident of South Dakota.
Below are some of the Advantages of South Dakota Trust:
Privacy – trust documents are not required to be filed as a public record.
Flexible and Amendable – can be revised as life and goals change.
No state income taxes – when income is not distributed.
Keep control of assets – maximum flexibility and control regarding the trust’s asset allocation, diversification, investment management, and distributions.
Asset protection – from creditors, lawsuits, and ex-spouses. Assets include securities, insurance, art, Family limited partnerships, LLCs, real estate.
Lower cost structure – allows for the Trustee duties to be bifurcated.
As you can see, women entrepreneurs can significantly benefit from this trust as it provides the ability for a settler to fund an irrevocable trust with a closely held business and keep control of the asset. It also can be signed, sealed and funded before marriage, helping avoid an awkward conversation with an intended spouse. Now you are free to decide how much of your hard earned money goes into the marriage pool without guilt or pressure from outside forces.
Ann Zuraw, Founder, and Fearless Leader/President of Zuraw Financial Advisors, a financial planning and investment management firm based in Greensboro, North Carolina serving families in all stages of life. “Never Give Up, and it is Never Too Late to Learn.” —this is Ann Zuraw’s (AZ) mantra.Our goal at ZFA is to encourage women to take responsibility for their finances. As a Chartered Financial Analyst, CFA ®, Certified Financial Planner, CFP ® and MBA- and entrepreneur, Ann built www.ZurawFinancialAdvisors.com as a Registered Investment Advisor with assets under management of $190 million.Ann served for 25 years as the only female on the board of her family’s real estate company. She witnessed firsthand the difficulties of running and expanding a business, along with the hardships of balancing family dynamics through economic ups and downs. At ZFA we believe that everyone can and should understand their finances and investment opportunities whether you have $5000 or $5 million. Ann utilizes her blog www.ChicksChatandChange.com to educate women about improving their financial life whether dealing with aging parents, kids, partners or just controlling their spending. Born in New Orleans and currently living in Greensboro, North Carolina, Ann lived in NYC, San Francisco & Oakland, and Sioux Falls, South Dakota. My family includes 3 young adult kids who like it or not are always learning about money and—2 English Bulldogs who refuse to listen…