What is a discretionary trust and how does it provide asset protection benefits?

A discretionary trust is a type of legal trust set up in Georgia to protect individuals’ assets from creditors. It is established when an individual (the settlor) transfers assets into the trust and appoints a trustee to manage them. The trust is then governed by a set of rules established by the settlor, known as the trust deed. The main benefit of a discretionary trust is that assets are held outside of the settlor’s name, which means they are not included as part of the settlor’s estate and therefore cannot be subject to creditors or other individuals pursuing them for payment of debts. The trustee also has discretion over who may benefit from the trust’s assets, which can be tailored to the settlor’s wishes. In addition, the trust can provide other asset protection benefits such as making it easier for the settlor to manage their estate, as trustees are able to make decisions on their behalf. It can also save on taxes, as the trust’s assets are not taxed until they are distributed to beneficiaries. Discretionary trusts are a popular way to protect assets in Georgia for estate planning purposes. They can provide the settlor a great deal of control over how their estate is managed and distributed, while offering them a degree of security from creditors and other potential claimants.

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What is a discretionary trust and how does it provide asset protection benefits?

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