What types of asset protection trusts are available?

Asset protection trusts are legal entities established in California that can help you protect your assets from creditors and lawsuits. These trusts come in several different types, depending on your needs. The most common types of asset protection trusts available in California include self-settled spendthrift trusts, discretionary spendthrift trusts, charitable asset protection trusts, and special needs trusts. Self-settled trusts are established by the same person who owns the assets that will be placed in the trust. With this type of trust, the trustor can both contribute assets to the trust and be the beneficiary. Discretionary spendthrift trusts are set up to protect assets and provide discretionary payments to the trust beneficiary. The trustee can decide when and how much of the trust’s funds to distribute to the beneficiary. Charitable asset protection trusts are designed to benefit both the trustor and the charity. The trustor transfers assets to the trust, and then the charity makes distributions to the trustor over time, while the remaining assets are left to the charity. Finally, special needs trusts are used in cases where the trustor has a disability. This type of trust is designed to supplement public benefits, such as Social Security and Medicaid, while still providing the disabled individual with resources to cover medical, living, or other expenses. Each type of asset protection trust in California has unique features and provides different levels of protection. It is important to consult with an experienced attorney to determine which type of trust best meets your needs.

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What types of asset protection trusts are available?

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