You may have heard about an Asset Protection Trust (APT), but you aren’t sure what it is or when it’s the best choice. An APT is a special type of trust that is used to protect your estate from any creditors, lawsuits, or judgments against your estate. For example, it’s common for people to name their children as beneficiaries in their trust, but if one of your children has a worrying amount of credit card debt, and you’re concerned that once they inherit your estate that creditors might come after it, you can create an APT to protect your assets.
Common Asset Protection Trusts
Domestic APT: Only available in a select number of US states, a Domestic APT is straightforward to set up with the help of an experienced estate planning attorney. Your assets will be held in a trust that resides within the US legal system.
Foreign APT: Also known as an Offshore Trust, a Foreign APT is more complex to set up, but generally thought to be more secure and provides greater privacy protection.
How Can I Move My Assets to an APT
The majority of people who set up APTs are financially comfortable and have a range of assets, including properties, cash, securities, cars, jewelry, businesses, boats, and aircrafts. Moving your assets to an APT requires a highly-skilled team of people including insurance brokers, financial planners, estate planning attorneys, and more. If you’re considering moving some or all of your assets into an APT, you need an experienced legal team to handle the process.
SCC Legal Can Help
At SCC Legal we can offer advice and guidance on whether or not an APT is the right choice for you. It’s important to note that APTs are irrevocable, so it is not a decision to take lightly, and it’s one that requires careful planning and execution.
For more information about Asset Protection Trusts, or if you have any questions about how they can benefit you and your family, please contact our team at SCC Legal today to learn more. We look forward to hearing from you.