Asset Protection Trusts: Help For Seniors

February 12, 2023

Asset protection trusts can be a great resource for seniors who want to protect their hard- earned assets. These trusts can help ensure that the assets are passed on to the intended heirs, and that the senior’s wishes are followed. Asset protection trusts are designed to protect the assets of a senior from being seized by creditors or lenders in the event of a lawsuit or an unpaid debt. They can also help in the event of long-term care or other medical expenses, preventing the senior’s assets from being drained. With the help of an experienced attorney, seniors can create an asset protection trust that is tailored to their needs, ensuring their assets are protected and their wishes are followed.

What is an asset protection trust?

An asset protection trust is a trust created by an individual or couple to shield assets such as real estate, stocks, or bonds from potential creditors. Asset protection trusts are also known as creditor protection trusts, creditor shielding trusts, or defrauding trusts. Asset protection trusts are irrevocable and are designed to avoid probate. While there are many different types of trusts, with each having its own distinct advantages and disadvantages, all types of trusts typically have one thing in common: they are designed to protect the assets inside the trust from outside parties, such as creditors.

Benefits of an asset protection trust

-Protects assets from creditors

-Assets placed inside an irrevocable trust are out of the reach of creditors, making the trust a powerful tool for protecting assets. Creditors can’t go after assets that are held in a trust.

-Protects assets from heirs

-Asset protection trusts can be used to ensure that a certain amount of assets are distributed to heirs, while keeping the rest out of their hands. A properly drafted trust can ensure that a senior’s heirs receive only the amount they are entitled to, while keeping the rest of the assets safe.

-Provides asset liquidity

-Assets inside an irrevocable trust can be liquidated, but the trust assets must be used to repay the trust first. Essentially, the trust is first in line to receive the assets of the trust.

-Can be used for long-term care planning

-Some asset protection trusts can be used for long-term care planning, with the funds from the trust paying for the senior’s care, along with the income from the trust. Other trusts may be to protect assets for heirs.

-Can be used for tax planning

-Trusts can be used for estate tax planning, gifting tax planning, or both.

An asset protection trust is a trust created by an individual or couple to shield assets such as real estate, stocks, or bonds from potential creditors. Asset protection trusts are also known as creditor protection trusts, creditor shielding trusts, or defrauding trusts. Asset protection trusts are irrevocable and are designed to avoid probate.

Conclusion

Are you trying to find a financial advisor in California? Look no further than Soutas Financial & Insurance Solutions Inc. your California Financial Advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax-Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

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