An asset protection trust is a type of trust designed for the purpose of protecting your assets. This type of trust involves a number of legal techniques to protect assets from specific types of threats.
When drafted properly, an asset protection trust can provide the following benefits:
An asset protection trust is a bespoke document, drafted by an attorney to specifically address your concerns, risks, and circumstances. While all of these protections sound beneficial, many of them involve some trade-offs. An experienced trust attorney can discuss your concerns, and explain the pros and cons, so your trust is tailored to your unique circumstances.
An asset protection trust may be irrevocable from the beginning. However, an asset protection trust may begin as revocable, with parts of the trust converting to “irrevocable” upon the occurrence of a triggering event. For example, a common triggering event is the passing of your spouse or you. It is common for a trust to be labeled “revocable,” even though it becomes partially or fully irrevocable at a point in the future.