Six Tips to Build Trust Protection
The six tips to build trust protection are:
- Never put your eggs in one basket. Use multiple trusts and different trustees
for different assets. Your creditor will have more difficulty challenging
several trusts. Multiple trusts also give you more flexibility to accommodate
multiple objectives, beneficiaries, or financial objectives.
- Use a foreign or international trust (not a domestic trust) to further
discourage litigation and maximize your protection.
- Incrementally transfer assets to your trusts. Smaller, staggered transfers
suggest those that were not intended to defraud creditors.
- Add innocent preambles to your trust. For example, your trust may state
an Estate Planning purpose.
- Include one or two beneficiaries other than yourself. A trust that will
only benefit you won't protect you against either your present or
- Don't control your trust. If you control the trust, your creditor can
claim its assets.
YES, YOU CAN LOSE EVERYTHING!
You may think that your wealth is safe and that you don't need protection.
But don't delude yourself and accept reality — for every 60
minutes you spend making money, spend 60 seconds thinking about how to