Asset Protection

Asset Protection Trust

Many people choose to protect their assets through a living trust. Learn how this works and if it is right for you.

Many people approach asset protection with a trust of some sort. There are a variety of different trusts that can be used for asset protection, and each type offers a different level of protection for those assets. For example, a living trust doesn’t offer much protection from creditors, but it can protect your assets from probate court. This means that you won’t have to worry about your assets ending up in the hands of people they weren’t intended for.

Irrevocable trusts offer slightly more asset protection because they don’t allow you any access. Since an irrevocable trust cannot be revoked, changed or accessed until after your death, those assets are not only considered no longer yours, there is no threat of them ever being yours again. At that time, though, the assets may not be safe because they may be paid out to beneficiaries. While this type of asset protection trust is the most successful at keeping your assets out of the hands of creditors, this is an extreme method of asset protection since you can no longer have access to them.

Another type of asset protection trust is an offshore trust. This type of trust is located overseas, and the trustees are all located overseas, which makes it very difficult for creditors to retrieve your assets. This likely the most expensive and difficult asset protection trust to obtain and maintain.

To acquire the most effective and useful asset protection trust, you should consult with a professional estate planner or an estate planning attorney. You can receive advice and counsel on the best way to protect your assets through a trust. This professional will also be able to inform you of any loopholes you may not be aware of that you might need to avoid. The attorney will also be able to make you aware of any assets that need protection, as well as those that don’t.