Use of Trusts for Asset Protection

9:01 pm Asset Protection, California Trusts

trust pic e1378498532909 Use of Trusts for Asset ProtectionFamilies who don’t have over $10.5 million in assets that would make their wealth subject to federal estate taxes may think they don’t need trusts, but there is nothing better for protecting wealth for future generations than the strategic use of trusts.

Without the protection of trusts, assets left outright to heirs are exposed to creditors and future divorce actions that could seriously deplete the estate in just one generation.  If trusts have already been established, they should be examined to determine if they provide optimal asset protection.  If they do not, there could be opportunities to decant the old trust and pour it into a new, better trust to protect assets.

To properly protect your estate, new trusts should have long-term durations; some states allow perpetual trusts and your estate planning attorney can advise you on whether setting up a domestic asset protection trust in another state would be a good move for you.

Trusts should also have some flexibility built-in to overcome any objections by heirs, including the ability to change trustees and providing beneficiaries with some decision-making powers.

If you would like to learn more about how a trust can help you protect your assets, contact our Costa Mesa law firm.

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