Let’s face it, nobody wants to lose the money they worked so hard to earn. That’s why asset protection has become a common goal of estate planning. Asset protection is a type of planning designed to legally protect your property from potential creditors so you and your family can enjoy the fruits of your labor.
What is An Asset Protection Trust?
An asset protection trust is a special type of irrevocable trust in which the trust funds are held and invested by the Trustee and are only distributed on a discretionary basis. The purpose of an asset protection trust is to keep the trust funds safe and secure for the benefit of the beneficiaries instead of having the funds be an available resource to pay a beneficiary’s debts.