What is a self-settled trust?
A self-settled trust is a legal tool used to protect assets from creditors in Michigan. It is an irrevocable trust created by a person who puts his or her own assets into the trust for his or her own benefit. This type of trust can provide a number of benefits, including avoidance of gift and estate taxes, protection against creditors, and transfer of assets to future generations without the need for probate. The person creating the trust, known as the “settlor”, establishes the trust and also names him or herself or another person as the beneficiary of the trust. This person is known as the “trustee”. The trustee is responsible for managing and investing the assets in the trust. The trustee is also responsible for following all of the legal rules and regulations associated with the trust. A self-settled trust can be a great tool for protecting assets and ensuring that they will be passed on to future generations, while still allowing the settlor to enjoy the benefits of the trust. However, it is important to keep in mind that this type of trust can also be very complex and it is important to seek professional advice to ensure that it is set up correctly.
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