Asset Protection Trust
An Asset Protection Trust (APT) shields your wealth from creditors, lawsuits, and other financial threats. It places your assets in a legal structure that protects them while still allowing you to benefit. APTs ensure that your assets are preserved for you and your heirs—safe from unforeseen liabilities.
Key Features Of An Asset Protection Trust
- Protects Assets from Creditors: Keeps your wealth safe from lawsuits, judgments, or claims.
- Preserves Family Wealth: Ensures assets pass to your intended beneficiaries without external interference.
- Provides Financial Security: Allows you to retain some control and benefit from the trust while safeguarding assets.
- Flexible Structures: Can be tailored as a domestic or offshore trust to meet your specific needs.
Our Asset Protection Trust Services
Need an experienced attorney to establish an Asset Protection Trust?
- APT Setup: We specialize in creating secure and compliant Asset Protection Trusts customized to your financial goals.
- Trust Management: Our team provides comprehensive trust administration services to ensure ongoing protection and compliance.
- Trust Review and Updates: Laws and circumstances change. We help you review and update your trust to keep it effective.
We provide personalized consultations to integrate Asset Protection Trusts into your estate plan, ensuring a holistic approach to wealth preservation.
Who Should Consider Setting Up an Asset Protection Trust?
An Asset Protection Trust is ideal for individuals and families concerned about preserving wealth from future financial risks. It’s particularly beneficial for professionals, business owners, or high-net-worth individuals with potential liability exposure.
Key Indicators You Should Consider an Asset Protection Trust:
- High Liability Risk: Business owners, doctors, and professionals exposed to lawsuits or malpractice claims.
- Significant Assets: If you have substantial wealth, an APT protects it from potential creditors.
- Complex Family Situations: Protects wealth during divorce, second marriages, or other family complexities.
- Preserving Wealth for Heirs: Ensures your assets pass to beneficiaries without external claims.
- Desire for Privacy: Keeps your financial information out of public records.
How to Set Up an Asset Protection Trust
Setting up an Asset Protection Trust involves clear steps to secure your assets. Here’s our process:
- Initial Consultation: We assess your financial situation and determine if an APT suits your goals.
- Custom Trust Drafting: Our attorneys draft a trust tailored to your unique needs and preferences.
- Review and Approval: We walk you through the details, ensuring the trust meets your expectations.
- Trust Funding: We guide you in transferring your assets into the trust for maximum protection.
- Finalization: The trust is formally established, and we provide all relevant documents for your records.
- Ongoing Support: We assist with amendments, compliance, and ongoing trust management as needed.
Disadvantages of Asset Protection Trusts
Asset Protection Trusts are powerful, but they come with some considerations:
- Cost: Setting up and maintaining an APT involves legal fees and administrative expenses.
- Irrevocability: Many APTs require giving up some control over the assets.
- Legal Complexity: Navigating domestic and offshore rules requires careful planning and expert advice.
- Timing Restrictions: Setting up the trust after a lawsuit or claim arises may not provide protection.
- Jurisdiction Matters: Offshore APTs may offer stronger protection but can involve additional legal hurdles.
Asset Protection Trust FAQ
An APT moves assets into a legal structure that creditors cannot access, as the assets are no longer considered part of your estate.
In most cases, you can benefit from trust income and, with careful planning, access the principal under certain conditions.
Domestic APTs operate under U.S. laws, while offshore APTs are set up in jurisdictions with stronger asset protection laws. Offshore trusts often offer higher security but involve additional costs and complexities.
If a lawsuit or claim is already in progress, it’s generally too late to protect assets with an APT. Planning in advance is key.
An APT primarily protects assets but can be structured to align with tax planning strategies. However, it is not typically a direct tax-saving tool.
Depending on its complexity, it can take weeks to months to draft and fund the trust properly.
Best Alternatives to an Asset Protection Trust
If an Asset Protection Trust isn’t right for you, consider these alternatives:
- Domestic Asset Protection Trusts (DAPT): Offers protection under specific state laws.
- Irrevocable Trust: Protects assets while reducing estate taxes.
- Limited Liability Company (LLC): Shields business assets and personal liability.
- Prenuptial or Postnuptial Agreements: Protects assets in case of divorce.
We Can Help You Set Up Your Asset Protection Trust
Our team specializes in setting up Asset Protection Trusts that safeguard your wealth from potential risks. We ensure every trust is customized to meet your specific needs while maintaining full legal compliance.
At SJF Law Group, we handle every detail with precision and care—contact us today to protect your assets and secure your legacy.