What types of asset protection trusts are available?

In South Carolina, there are two main types of asset protection trusts available: Self-Settled Spendthrift Trusts and Discretionary Trusts. Self-Settled Spendthrift Trusts, also known as Domestic Asset Protection Trusts, are trusts that allow an individual to protect assets from creditors and other claims. This type of trust is usually used when someone is in financial trouble and wants to protect their assets from creditors, or when they are in a high-risk profession and want to protect their assets from malpractice suits. The trust is irrevocable and contains specific provisions that make it difficult for creditors to attach the assets. Discretionary Trusts are trusts used for asset protection that allow the trustees to distribute assets according to their own discretion. This type of trust is often used by wealthy individuals as a way to protect their assets from creditors and to provide for their heirs without having to worry about estate taxes or probate proceedings. Both types of asset protection trusts have advantages and disadvantages. Individuals should seek the advice of a qualified asset protection attorney to discuss which type of trust is right for their particular situation.

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