Asset Protection Trusts
Thousand Oaks Estate Planning Attorney
More and more people are establishing trusts in order to protect their wealth. Many different types of trusts can deter creditors or opposing parties from seizing your property or assets. Before creating a trust, however, you must ensure that your wealth will be protected in the type of trust you've selected. Revocable trusts are appropriate for managing your property in certain situations, but they cannot protect your assets from third party claims.
Irrevocable trusts, on the other hand, allow the settlor to transfer their rights to a trustee. If the trustee owns the items in the trust, third parties cannot attempt to seize said assets, as they are no longer in the settlor's possession. Irrevocable trusts may take effect during a settlor's lifetime or become effective upon their death. At Pederson Law Offices, we believe that protecting our clients' wealth is an extremely important part of estate planning.
If you wish to establish an asset protection trust, contact an estate planning lawyer today at (805) 372-1507.
Types of Asset Protection Trusts
Bypass or credit shelter trusts offer families transfer-tax savings income to the surviving spouse throughout their lifetime and the ability to ensure that beneficiaries receive the trust's assets. Martial trusts, also known as qualified terminable interest in property (QTIP) trusts, offer the same asset protection without the transfer-tax savings. A marital trust is established by a married individual in order to provide for their spouse when the individual passes away. If properly designed, a marital trust can also protect the settlor's assets in the event that the surviving spouse remarries.
If a martial trust does not exist, a new spouse could attempt to use the money that was left to the surviving spouse. Income-only trusts provide an ongoing income to a beneficiary in order for them to maintain a certain standard of living, while protecting the trust's principal. Depending on the settlor's trust provisions, dynasty trusts may provide family members with wealth protection for as long as several generations, allowing families avoid wealth transfer taxes for many years.
Asset Protection Attorney in Thousand Oaks, CA
A person has numerous options for asset protection trusts. Although they may sound similar, every type of trust has slightly different provisions. If you wish to speak to a lawyer prior to establishing a trust, please contact our office. Our lawyers have over 60 years of estate planning and probate law experience.
We have the ability to discuss which types of trusts are the most beneficial for you and your family. Call our attorneys today at (805) 372-1507 to get started.