Preview
Posted in: Insurance Law, Business LawShow details
Can a Trust Protect Assets from a Lawsuit? In a word, yes. Certain kinds of trust can protect assets from lawsuits. An asset protection trust, for example, can protect you from a lawsuit, but most living trusts do not. It is important to note that one must also draft the trust properly and associate it with the appropriate jurisdiction.
Preview
Posted in: Trust LawShow details
A trust is a legal arrangement where the legal ownership of an asset is separate from its beneficial ownership. The legal owner, called a trustee, may deal with the asset at its discretion. Yet, any loss or profit made from those assets is for the benefit (or loss) of the beneficial owner. This person is the beneficiary.
1. Estimated Reading Time: 9 mins
Preview
Posted in: Business Law, Trust LawShow details
Preview
Posted in: Insurance Law, Business LawShow details
A living trust does not protect your assets from a lawsuit. Living trusts are revocable, meaning you remain in control of the assets and you are the legal owner until your death. Because you legally still own these assets, someone who wins a verdict against you can likely gain access to these assets.
Preview
Posted in: Trust LawShow details
Asset protection trusts offer a way to transfer a portion of your assets into a trust run by an independent trustee. The trust's assets …
Preview
Posted in: Trust LawShow details
Principle 1 – where the husband and partner both have control of the trust and are beneficiaries, the assets of the trust will be considered Property. It is only necessary for one of them to occupy the position, and it need not be the same person;
Preview
Posted in: Trust Law, Property LawShow details
Asset protection and family law: Structuring trusts to provide maximum protection 2 HPGDGANI LAES Introduction Discretionary trusts have long been used by families to arrange their financial affairs. It would be fair to say that the use of discretionary trusts has been widespread mainly due to the asset protection and tax minimisation advantages provided by …
Preview "PDF/Adobe Acrobat"
Preview
Posted in: Trust Law, Family LawShow details
The issue with having multiple assets in one trust is that it increases the exposure for possible litigation from multiple tenants and therefore many clients limit the number of assets in each trust. This is done for managing asset protection, increased flexibility with some banks, managing different cash flows and managing land tax just to name a few reasons.
Preview
Posted in: Trust Law, Property LawShow details
If the trust is established before the relationship and the party in control of the trust seeks to protect the assets the trust holds, they should consider seeking advice from a family lawyer about the preparation of a financial agreement. When you are a parent, and want to protect assets from a future claim by a partner of one of your children, you should take …
Preview
Posted in: Trust Law, Property LawShow details
Discretionary trusts provide asset protection if no beneficiary has any right to demand payment of income or capital from the trust. The beneficiaries only right is for the trust to be properly administered. So if a beneficiary were to become bankrupt the creditors will stand in their shoes as beneficiaries but they don't have any right to demand income or capital from the …
Preview
Posted in: Trust Law, Property LawShow details
The law considers assets in a revocable trust as your personal assets. Creditors and estate taxes continue to include those assets. Thus, revocable trusts have virtually no creditor protection when lawsuits strike. A benefit to this type of trust is the avoidance of probate for the assets they hold.
Preview
Posted in: Estate Law, Trust LawShow details
Trusts have been around since medieval times, and are wonderful vehicles to save tax, protect assets and create estates for your family for many generations. Knights originally created trusts to protect themselves from vicious landlords. I love trusts, because as well as protecting assets, they can significantly reduce your tax.
Preview
Posted in: Estate Law, Trust LawShow details
You can act as the trustee while you are living, so you maintain control of the assets, and you can act as the beneficiary at first as well. You may feel comfortable conveying assets into this type of trust, because you maintain control. However, because you are still in control of the assets, they would not be protected from lawsuits.
Preview
Posted in: Trust LawShow details
Asset protection trusts allow you to transfer a portion of your assets into a trust that an independent trustee runs. These assets are out of the reach of creditors and you can still receive periodic distributions. These trusts can also shield the assets for your children or other beneficiaries. Asset protection trusts must be irrevocable to protect your assets from …
Preview
Posted in: Trust Law, Children LawShow details
Anything can happen in the fast paced world of business. Lawsuit injury, and only a moment for it all to be lost or taken away. Protecting assets against frivolous creditors and lawsuits has become an increasingly common concern in Australia. When being sued, people are after the liquid value of your assets, not necessarily the bricks and mortar or the tangible assets that …
Preview
Posted in: Business Law, Family LawShow details
If you have significant cash assets, you may be able to protect at least a portion by putting it in an IRA or other type of retirement account that is protected from lawsuits by federal or state law. Protection for IRAs and other qualified retirement plans applies only in bankruptcy, not to judgments in other courts.
1. Views: 33K
Preview
Posted in: Bankruptcy LawShow details
While trusts can protect assets from lawsuits, not every type of trust offers lawsuit protection. A revocable trust, such as a living trust, will not fill that bill. This is because creditors can step into our shoes and invoke your power of revocation. That is not the case with a properly drafted irrevocable trust.
An asset protection trust is irrevocable, meaning that any transfer of assets into the trust is permanent. In other words, the trust would own the assets in question and they would be managed by the trustee. By removing those assets from your ownership, you can protect them against creditor lawsuits.
While domestic asset protection trusts can provide sufficient asset protection in a number of circumstances, they are not the only option available. Nevada residents may also avail themselves of the asset protection afforded by limited liability companies, homestead exemption, and offshore trusts.
Asset Protection Trust (APT) 1 Understanding Asset Protection Trusts. An asset protection trust is a self-settled trust in which the grantor can be designated as a permissible beneficiary and allowed access to the funds in ... 2 Two Types of APTs. ... 3 APTs Are a Complex Form of Trust. ...