Having a complete estate plan often requires more than just writing a simple will. Creating a living trust can go a long way toward providing peace of mind for yourself and your family.
However, there are several types of trusts, and your own personal circumstances can greatly affect which trust option is right for you. An asset protection trust emphasizes preservation, but it is important to fully understand the reasons why pursuing this type of trust might be the best choice.
1. Protecting against lawsuits
If someone happens to file a lawsuit against you and wins, they can go after personal assets to satisfy the judgment. An asset protection trust can shield many of those assets. When assets sit in such a trust, they no longer belong to the individual directly. This makes it harder for creditors or plaintiffs to reach those assets.
2. Safeguarding against creditors
Creditors can aggressively pursue repayment, sometimes leaving debtors with little to no assets. By placing assets in an asset protection trust, individuals can protect their wealth from creditors. These trusts can make it difficult for creditors to access funds. The trust can ensure that individuals retain control over their assets while keeping them out of reach from creditors.
3. Ensuring family inheritance
An asset protection trust can guarantee that assets go to designated heirs. The trust provides a secure way to manage and distribute assets according to specific wishes. This can include setting terms for when and how beneficiaries receive the assets. By using an asset protection trust, one can ensure that their family’s financial future remains secure and aligned with their desires.
An asset protection trust offers significant benefits in protecting wealth. These trusts provide a reliable way to manage and protect assets, giving individuals more control over their financial future. By considering these factors, you can make informed decisions about estate planning and financial security.
