What is an Asset Protection Trust?

An Asset Protection Trust (APT) is a legal way of structuring one’s assets in order to protect them from potential creditors, lawsuits, and other legal matters. In Florida, these trusts can be created in order to protect assets from future claims. The trust can be structured in such a way that the owner can retain ultimate control over their assets and still benefit from the protection provided by the trust. The purpose of an Asset Protection Trust (APT) is to provide a way for the owner to protect his or her assets from creditors and lawsuits. APTs can be used to protect assets such as real estate, investments, retirement accounts, vehicles, and cash. An APT is designed to protect the owner from many different types of creditors, including those from business transactions. This type of trust is different from a traditional trust, in that it does not pass assets to heirs upon the owner’s death. Instead, the assets remain in the trust and are used to pay creditors and other legal matters. In Florida, an APT can be set up in several ways, including a self-settled or third-party trust. Self-settled trusts are designed with the owner as the grantor, while third-party trusts are designed with someone other than the owner as the grantor. It is important to note that APTs are subject to Florida’s inheritance laws, so it is important to seek the advice of a qualified attorney before setting up an APT in Florida.

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