Trusts aren’t just for estate planning. Asset Protection Trusts (APT) can be a great way to protect your valuables. We help you decide what’s right for you.
An asset protection trust is a structure that holds assets and then describes exactly how those assets will be used to benefit specific people or entities. It removes an asset's title from your name. When a creditor pursues you, they can’t go anything you’ve transferred to your APT.
Anyone who wants to put their assets into an APT can do so. This is most helpful for high-net-worth individuals, business owners, professionals in high-risk occupations (e.g., doctors, lawyers), real estate investors, individuals concerned about future lawsuits, and wealthy families who are estate planning.
When an asset protection trust is set up, there are 3 roles: grantor, trustee, and beneficiary. The grantor is the person who creates and puts assets into the trust. The trustee is the company or person who oversees the day-to-day functions of the trust. The beneficiary is the person who gets the benefit of the trust assets. You can set yourself up as the grantor and the beneficiary.
With the help of an attorney (us!), you can protect your assets from legal claims. Much like an LLC, an APT is a legal structure that separates assets from their owner, putting them out of reach from creditors. This kind of trust can also be more effective than prenuptial agreements when getting married.
Assets include personal home, real estate investments, securities, stocks & bonds, intellectual property, savings & checking accounts, LLCs & corporations, alternative currencies (e.g.. Bitcoin) and, antiques & collectibles. Depending on your situation or assets, you may want to keep some assets out of your APT.
Asset protection is about planning ahead. It works best when you do it before you have any problems. It's a legal way to organize your money and property to keep it safer. Early in your career and when you acquire significant assets can be good times to look into setting up an APT.
We prepare your asset protection trust document. This legally binding document tells the trustee(s) how to manage it and names the beneficiaries.
The grantor transfers assets to the APT by first opening bank and investment accounts in the asset protection trust’s name. Once open, they transfer assets. Transferring any real estate property is done by executing and filing a deed to the trust’s name. Other assets may be transferred over time.
An asset protection trust may be right for you if you want to protect your personal assets. These kind of trusts are commonly used by those who own businesses in risky industries, question the ability of heirs to manage an inheritance, or bring unequal wealth to a marriage.
Professions that tend to benefit from APTs are those that are more exposed to potential lawsuits, malpractice claims, or significant financial liabilities. When the nature of your work puts you at higher risk of legal action, making asset protection strategies particularly valuable.
