Domestic Asset Protection Trusts Lawyer in California
Apple Valley, Beaumont, Hemet, Moreno Valley, Ontario, San Jacinto, Upland, West Covina
Over the past several years, many professionals have become much more sensitive to the risk of lawsuits and other serious economic threats. For these professionals, asset protection has become a vital part of their estate plan. The relationship between asset protection and estate planning is clear: it is necessary to protect assets from creditors in order to maximize the wealth that is ultimately transferred to beneficiaries.
One method that has been tried to varying degrees of success is to transfer assets to “offshore” trusts, which are simply trusts that are established pursuant to the laws of a foreign jurisdiction. Effective as they may be, the cost of establishing and maintaining offshore trusts is in many cases simply too much to consider it a realistic option.
In some states, legislation has been recently enacted that may allow these professionals to at least partially shield their assets from claims made by creditors by transferring the assets to a domestic self-settled spendthrift trust. A spendthrift trust is a trust that contains a provision that prohibits the beneficiary of the trust from assigning his or her interest in the trust, which prevents the beneficiary’s creditors from reaching the interest. Most states do not allow this spendthrift protection if the trust was “self-settled”, meaning the person creating and funding the trust (the “settler”) is also the beneficiary of the trust.
Contact Hedtke Law Group for Domestic Asset Protection Trusts Lawyer.