What is an asset protection trust?

Asset protection trusts are shielded from creditors and lawsuits. That means if you find yourself getting sued, the resources will not be considered as belonging to you, and the creditor won’t be able to demand payment or transfer of the asset. Assets held in a foreign trust can also be protected from divorce claims and civil actions.

Do you need an asset protection trust?

An asset protection trust can help you keep your assets from creditors, lawsuits and even divorce claims and civil actions. If you’re considering an asset protection trust, use this guide to determine which one may be best suited to your needs—and what process is required to properly establish one. What Is an Asset Protection Trust?

Are asset protection trusts irrevocable?

Asset protection trusts are irrevocable in nature and come with added benefits, like minimizing estate tax. They must be constructed carefully in order to do what they purport to do (protect assets) so it is best to hire an estate attorney to set one up, which can become costly.