Is a trust your best asset protection option? A trust may shelter you, but most will not. America’s wealthiest families have historically relied upon various trusts to protect their wealth from taxes. Now folks from every economic background use trusts for myriad purposes. Asset protection is one of the more important.

Trust Basics

A trust is created by the person settling or grantor (the terms are interchangeable) who funds or gives property to the trust. As the trust creator, the grantor sets the terms under which the donated assets shall be managed and distributed.

The grantor names one or more trustees. The trustee may be the grantor. The grantor designates the beneficiaries who are to benefit from the trust and receive its income and principal. Certain trusts allow the grantor to be both the trustee and the beneficiary. This is common with the living trust.

To consider a trust for protection, you must ask:

1)   Which trusts can protect your assets from your creditors?
2)   Which trusts can protect assets that you bequeath to your beneficiaries from their creditors?
3)   How can you improve your trust protection?
4)   How much asset protection can you get from the different trusts?

Below are the links for more information regarding trusts:

• Lawsuit-Proofing your Trusts
• Common Trust Pitfalls
• Protecting and Safeguarding Inheritances
• Overview of Different Trusts
• Avoid Trust Shams
• Lawsuit-Proofing your Estate
• Disclaiming Inheritances
• Six Tips to Build Trust Protection
• Update your Estate Plan
• Domestic Asset Protection Trusts

YES, YOU CAN LOSE EVERYTHING!