What is asset protection trust?
What are asset protection trusts?
Asset protection trusts are like any other trust, but with the intention of protecting an individual's assets. These trusts can be set up to provide legal protection for the trustor's children, spouse, and other loved ones. The trustor can also choose to protect their own assets from creditors. Asset protection trusts are not just for the rich and famous anymore. Nearly anyone in any state can benefit from having some form of asset protection trust in place.
A trust is an agreement between the settlor and a trustee that enables the settlor to transfer property to beneficiaries while retaining certain rights over the property. The terms "trust" and "beneficiary" are often used interchangeably, but technically the beneficiary is the recipient of the assets held in trust. A trust may be revocable or irrevocable, meaning that it can be changed or terminated by its creator (settlor) at any time, or that the creator cannot change or terminate it after it's created. Irrevocable trusts typically last for a set period of time or until some event occurs, such as death.
What are asset protection trusts?
Asset protection trusts were developed primarily for wealthy individuals with large sums of money that they wanted to protect from lawsuits, creditors, divorce settlements, and large tax bills. Specifically, these individuals wanted to avoid losing their assets through legal actions against them and their spouses (spendthrifts), creditors seeking repayment of loans or unpaid bills (creditors), divorce courts who might divvy up their property amongst themselves (spouses), and the IRS (taxes). Asset protection trusts give you more control over your assets than you have if they're held individually in your own name. For example, you can.
If you need trust lawyer, please call this law firm for a free consultation:
Parklin Law
5772 West 8030 South, Unit N206,
West Jordan, UT 84081
(801) 618-0699