Having a nest egg put away for the future is always recommended. Unfortunately, it is rather challenging to keep it undiluted through years of crisis and financial constraints. Individuals with a high net value can always turn to a reputed Trust company to secure their wealth and ensure protection for their assets. The key to achieving financial well-being and retaining peace of mind is to consider hiring the specialized services of an Asset Protection Trust that has attained an unblemished track record of excellence.
You have to check out the associated facts and understand the role of the Trust before approaching it and requesting certain services. Formulating a well-thought-out strategy and making the available wealth secure for future use is one of the fortes of such a trust. Some of the answers that you should be seeking before having a trust protect your assets must include the following:-
Asset Protection Trust (APT): What Is It?
It is a company or trust that holds the asses of a client by keeping it secure for the future. The wealth as well as other assets are guarded fiercely with the creditors having no access to it. In other words, your assets will be protected from every sort of risk from creditors, judgments, and litigators. Such APTs are known to impact legislation positively thus influencing the settlement clauses favorably.
Types of APTs
There are two distinct types of APTs available to American citizens at present. They are described as the following:-
- Domestic APT– These trusts provide flexibility according to asset protection trust laws across the USA. It can be set up speedily with the assets being retained within the boundaries of the nation. 17 states allow such trust funds right now. However, more states are definitely recognizing this need and permitting citizens to set up APT with an increase in popularity.
- Foreign APT- The asset protection trusts that are set up beyond the sores of America are also referred to as offshore trusts. The latter term is often favored as the trusts are funded from accounts held in a foreign land. Interestingly, such trusts do not come under the jurisdiction of the USA. The most popular and widely used offshore trusts are located in the British Virgin Islands and the Cook Islands. The privacy measures of foreign APTs are quite stringent and result in many individuals and business entities use them despite the process being costlier than the domestic APTs. Taxation rules of the United States do not impact the funds held in foreign APTs making it yet another plus for the users.
Assets Held in Trusts
While there is no pre-requisite for setting up a trust for holding assets, having wealth is needed to make it work in your favor. You do not have to deposit cash frequently into the account, however. The other types of assets that may be protected by the trust include securities, LLCs, real estate, and RVs.
Setting up an Asset Protection Trust can be beneficial for individuals who are keen to preserve their assets and pass them over to a beneficiary in the future.