What are self-settled trusts?

Self-settled trusts, also known as "asset protection trusts," are a type of trust popularly used in Georgia to protect assets from creditors, especially in cases of bankruptcy. A self-settled trust is created by an individual whereby they transfer their assets to a trust for their benefit, with the trust’s assets remaining the property of the trust and not the individual. The trust then appoints someone (called a "trustee") to manage these assets for the benefit of the individual. In Georgia, creditors cannot access the assets held in a self-settled trust. This makes them an attractive option for people who want to protect their assets from creditors, or even in cases of divorce. This protection is not absolute, however; there may be circumstances where creditors can access assets held in a self-settled trust, such as if the transfer was made in bad faith or to defraud creditors. The most important thing to remember about self-settled trusts is that they must be set up properly. This means consulting a lawyer who is familiar with Georgia’s asset protection laws in order to ensure that the trust is created in a manner that is most likely to protect the assets from creditors.

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What are self-settled trusts?

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