What is a self-settled trust?

A self-settled trust is an asset protection trust that is established in South Carolina with the intention of protecting assets from creditors, debtors, lawsuits, and other liabilities. In a self-settled trust, the person who creates the trust (the settlor) is also the beneficiary of the trust. The settlor transfers assets into the trust that would otherwise be subject to creditors’ claims, and the trust then owns the assets. The settlor can use the assets within the trust to provide for their own needs, such as providing financial support or paying medical bills. A self-settled trust also allows the settlor to choose the trustee, who is the manager of the trust. The trustee has a fiduciary duty to manage the trust according to the settlor’s wishes and in the best interest of the settlor. The trustee is responsible for ensuring the assets in the trust are managed properly and according to the terms of the trust. Self-settled trusts can be beneficial for South Carolina residents who want to protect their assets from creditors, debtors, and lawsuits. By transferring assets into the trust, they can prevent creditors from being able to access the assets and use them to satisfy judgments or debt. This type of trust also allows the settlor to keep control of their assets, while still providing them with the necessary protection.

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What is a self-settled trust?

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