What types of asset protection trusts are available?

Asset protection trusts are an important tool for safeguarding your assets in Washington. These trusts are available in a variety of forms, each with its own advantages and disadvantages. The most common types of asset protection trusts include irrevocable trusts, discretionary trusts, and self-settled spendthrift trusts. An irrevocable trust is a trust that cannot be modified or cancelled by the grantor, or the person who creates the trust. This trust is commonly used to protect assets from creditors and the grantor is not able to revoke or modify the trust once it has been set up. A discretionary trust is a trust that allows the grantor to place certain restrictions on the distribution of the trust assets. This type of trust allows the grantor to specify how and when the assets in the trust should be distributed. Lastly, a self-settled spendthrift trust is a trust in which the grantor is also the beneficiary. This means that the grantor can set up the trust to protect their assets and benefit from the trust at the same time. This type of trust is often used to ensure that a child’s inheritance is protected from creditors, while still allowing the grantor to benefit from the trust. All of these types of asset protection trusts can be useful for protecting your assets and ensuring that your financial assets are safe. Depending on your needs, you may wish to consider one or more of these types of trusts when creating an asset protection plan.

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What types of asset protection trusts are available?

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