Wanting to leave something behind for your heirs is a noble endeavor. Family is one of a person’s greatest legacy. Protecting all the wealth you have accumulated through years of hard work from liens, taxes or other legal claims helps fulfill your goal of leaving assets for your loved ones.
Knowing what trust to put up can protect your assets and ensure all goes to your intended beneficiaries. Here’s one you can consider:
Asset protection trust
Asset protection trusts, or APTs, are powerful tools for protecting your estate from creditors and other legal disputes. They are irrevocable trusts that protect your assets not just from creditors but also from your beneficiaries, as they contain a spendthrift clause that prevents them from wasting their inheritance with uncontrolled spending.
Two types of APTs
APTs have two types: domestic and foreign. As the name suggests, domestic APTs are trusts held in accounts in the United States. About twenty states permit the creation of domestic APTs, Nevada being one of them.
On the other hand, foreign APTs or offshore trusts are trusts held in foreign accounts outside of U.S. authority. While they offer more protection and are more costly, they also carry the risk of instability in the country where the trust is located.
Reliable but also complex
APTs offer one of the most reliable ways to protect your estate, but may also be the most complex form of trust you can create. To ensure complete protection and compliance with the law, consider enlisting the services of a financial planner and a legal counsel.