What is an Asset Protection Trust? | Denver Colorado

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What is an Asset Protection Trust? | Denver Colorado

If you’re interested in a financial protection planning tool that will protect your estate from lawsuits, creditors and judgments, you’ll want to speak with an estate planning attorney about the benefits of establishing an asset protection trust.

Not only can this type of trust deter possible lawsuits before they begin, they can also help provide a favorable outcome during settlement negotiations. An asset protection trust is an excellent tool for those who are wanting to get solid peace of mind for their financial future.

Asset protection trusts defined

The key thing that makes this type of trust different from its counterparts is that the person who holds the trust will serve as both the settler and beneficiary. Ultimately, you’ll have a certain amount of control when it comes to how the trust’s assets are used.

As the settler, you’ll fund the trust and as the beneficiary, you’ll also benefit from the trust’s assets. Stocks, bonds, cash, personal possessions, vehicles, personal property and real estate can all be transferred into an asset protection trust.

It’s also worth noting that when assets are placed into this type of trust, they’re protected from lawsuits and creditors. If the trust holder is sued, the plaintiff is only able to go after the trust holder’s personal assets. Anything that’s being held in the trust cannot be used to satisfy a judgment.

How to establish an asset protection trust

When it comes to setting up a trust, the most important thing you can do is to hire a reputable, experienced estate planning attorney. The attorney can also help you decide where to establish the trust- because the legal jurisdiction in which its established will determine which laws that your assets will be protected by. 

There are pros and cons associated with both domestic asset protection trusts and offshore asset protection trusts. Your attorney will be able to help you understand the benefits and downfalls of both, which will allow you to make the best and most informed decision based on your situation.

Estate planners you can trust

If you have questions about estate planning and/or you’re interested in learning more about how an asset protection trust can help protect your wealth, we can help.

The experienced estate planning attorneys at The Law Network PC have years of experience in helping people just like you navigate these types of waters. When you schedule a consultation with our office, we’ll spend time learning about your current financial situation, and we’ll also what to know what your goals are for the future. 

If you have questions about the various types of trusts, how long it will take to get one set up and what the benefits are of moving forward today, as opposed to two years from now, we’ll be happy to answer your inquiries fully and thoroughly. For more information on our firm or to schedule a free consultation today, call our office now at 303-267-1111 to get started. Call today to learn why we’re the most trusted estate planning law firm in Colorado.

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