Asset protection trusts are typically established by individuals in high risk occupations (i.e., doctors and real estate developers) and very wealthy individuals that realize they are targets for creditors due to their net worth. Asset protection trusts can also be used in lieu of a prenuptial agreement.
Is it good to put assets in a trust?
Moving your house or other assets into a trust (specifically an irrevocable trust) can decrease your taxable estate. For a wealthy estate that could otherwise be subject to a state or federal estate tax, putting assets into a trust can help avoid or minimize the estate taxes.
Can someone sue you for assets in a trust?
While you technically cannot sue a family trust, you can sue the trustee of a family trust if you have a claim to assets held by that trust, or if you think that the trustee is mismanaging or stealing from the trust.
Why do you need an asset protection trust?
The idea of an Asset Protection Trust is to take your main asset – the family home – and transfer it in a trust so that you no longer own it. The theory is that if you don’t own the property, it cannot therefore be taken into account when deciding whether you should pay for some or all of your care costs.
What does it mean to put property in a trust?
A trust is a legal document outlining how you’d like putting property in a trust and other assets distributed after you die. A revocable or living trust allows you to maintain full legal control and ownership of the trust, including the properties and assets, until the time of your death.
Can a property be assessed as capital under a property protection trust?
A’s share of the property is already in the property protection trust. Therefore it cannot be assessed as capital to pay Mr. A’s care fees because it doesn’t belong to him.
How old do you have to be to set up an asset protection trust?
Anyone over the age of 18 who has capacity can appoint a solicitor or expert to set up asset protection trusts. A trust is a useful scheme for anyone who is considering how to pass on their property. “A basic trust in a will could be as little as £300. Complex trust arrangements requiring specialist legal advice could be several thousand pounds.”
