Asset Protection Trust

Ever heard the term trust fund baby? (If you are one, please have us over for a very expensive dinner. We’ll bring the cheap wine that you’ll complain about later.) Trust funds aside, domestic asset protection trusts are specialized trusts set up to protect your assets from creditors...and to minimize taxes.

As noted by ASTEC (2017), these trusts are irrevocable, with the trust being managed by an independent trustee. The thing to know is that the trustee wears the pants in the deal. He or she is the decision maker in terms of how funds are distributed. As of 2017, just 17 states offered these options.