An asset protection trust (APT) is a type of trust that is used to keep someone’s assets safe from creditors. This type of trust can be useful for those who hope to minimize taxes on an estate. It can also ensure that the assets they have allocated to their beneficiaries are protected during and after their life. They are usually opened by individuals who own businesses or have occupations that put them at risk of lawsuits.

What are some of the benefits of a lifetime asset protection trust?

  • Protecting your assets from creditors — A lifetime asset protection trust is specifically utilized to keep assets safe from creditors so that they can be passed down to beneficiaries. In the event that a creditor was to attempt to collect your assets as a result of a lawsuit, the trust would keep your assets secure. 
  • Protecting assets from going through probate — Another benefit of this type of trust is that it can prevent your assets from going through the court system after your death. By avoiding probate, your beneficiaries can receive your assets quicker and with minimal fees owed.

What else should you know about lifetime asset protection trusts?

It is also important to note that lifetime asset protection trusts are irrevocable. This means that once your asset has been transferred to the trust, it is no longer in your possession. Assets in the trust cannot be removed. If you decide to set up a lifetime asset protection trust, you must first be certain that you want that asset to be passed on to a specific beneficiary, because it cannot be changed.

Talk to a ProVise CFP® professional about your asset protection plan

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid. 

We believe that asset protection is essential, which is why we are confident that our team can help you create a structured asset protection plan that is unique to your financial circumstances.

Are you ready to talk to a professional about asset protection? Contact ProVise today to schedule a complimentary consultation.