If you like this video, go ahead and click the thumbs up and subscribe, because we release new content all the time. If you’ve watched any of our videos or know anything about our practice, you know we focus on asset protection trusts.
Certain jurisdictions allow clients to set up what’s called an asset protection trust. This means it’s a trust set up by you for your benefit, and the assets within it are protected from any type of creditor claims, lawsuits, malpractice suits, negligence suits, divorcing spousal claims, and even bankruptcy.
One of the questions we often get is whether there are other ways—specifically, other types of trusts—to protect family assets and wealth. The answer is yes. For example, in most cases, if parents have an inheritance to leave to their children, that inheritance should be left inside an irrevocable trust. Some people call it a “descendants trust,” but we usually refer to it as an “inheritor trust.” There are different ways to structure it, but ultimately, if any assets you leave your children or anyone else are kept inside an irrevocable trust and structured correctly, those assets will be protected from creditor claims, lawsuits, malpractice suits, negligence suits, and divorcing spousal claims.
Divorcing spousal claims are really the biggest concern for most people when they’re passing on family wealth. Even in the best of times, marriage can be a challenging endeavor, and families want to ensure they’re taking care of their children and grandchildren, preventing someone from potentially running off with that hard-earned family wealth.
So, keep that in mind, and like I said, subscribe to our channel and give us a thumbs up!