Benefits & Features of the Asset Protection Trust
This is essentially a discretionary trust where the assets are placed to shelter them from potential future claims. These have increased in use in recent years with the rapid increase, primarily in the USA, of litigation against professional firms and the medical profession.
This straight-forward trust is set up to provide protection from any type of future claim, including creditors’ claims, claims in a divorce settlement and judgments. In order for this trust to provide the maximum level of protection, it needs to be an irrevocable discretionary trust. This means that the power to appoint any part of the trust fund will remain at the full discretion of the trustee.
Depending on the proper law under which the trust is set up, the assets transferred into trust will be sheltered from any potential claim after a set number of years.
- Those who are at the front line and vulnerable to litigation claims
- Those who are involved in various business deals and who wish to protect assets from the claims of creditors
- Protects assets against creditor and divorce claims
- Can help reduce the taxable estate of the settlor
Only in resident state of beneficiaries.