You cannot shirk the responsibility of providing for your family. True, you earn enough to feed them and ensure basic comforts but there is something more that you need to do for the dependents. Yes! You can always have some cash saved in bank accounts and may buy insurance policies to protect them financially. Sadly, a substantial amount of wealth cannot be secured by these means. It is advisable to get in touch with a Trust Company serving in your area to set up an Asset Protection Trust that will provide the right support to all your beneficiaries
The idea seems exciting enough. However, you must be sure to check all related facts and be convinced about them before going ahead with the process. It is important to be well aware of the facts that will help you to protect your assets in the long run. Check the following to make an informed decision about protecting your assets:-
Salient Points Related To Asset Protection Trust (APT)
- You must enter into the system and set the desired trust with the assistance of a financial planner who is capable and willing to explain the nitty-gritty in lucid terms.
- The APT is a complex tool meant for financial planning. It is primarily designed to protect the assets in the trust from creditors
- The Trust is believed to offer the best protection from creditors, judgments, and legal suits filed against the estate
Types Of Apt To Consider
You may opt for either a domestic or foreign asset protection trust as per your requirement.
- Domestic– These APTs can be set up quickly. The laws of setting up an APT are flexible. However, this benefit is permitted by 17 states at present. There is a downside though. Your assets held within the United States of America will be at risk of losing the assets due to liens, judgments; federal bankruptcy laws as well as diverse State laws.
- Foreign– A majority of Americans favor foreign APTs as your assets will be held in another country that is not under US jurisdiction. Alternatively known as offshore trusts, you may have your assets protected in the British Virgin Islands or Cook Islands, NZ. Yes, the expense of maintaining such trusts may be a trifle more than that of having a domestic trust but the exceedingly stringent measures of asset protection and privacy make them more advantageous for US and UK citizens.
Funding Of APTs
The first consideration for setting up an APT is wealth. You must be substantially well-off to maintain the assets in a trust. The assets that you may hold within a trust either onshore or offshore include the following:-
- Cash
- Securities
- Limited liability companies (LLCs)
- Intellectual property, inventories, and business equipment as well as other business assets
- Real estate
- Recreational assets such as lake houses, cabins, vacant land, aircraft, RVs, and boats
Having one of the top Trustee Companies help you set up an Asset Protection Trust can be a wise financial move especially when you are determined to secure the future of your family.
