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 future creditors.
- 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 protect it!