What is an asset protection trust?

An asset protection trust is a type of trust created in order to safeguard assets from potential creditors and claimants. This type of trust is sometimes referred to as a spendthrift trust and is most commonly used for individuals with significant wealth. Asset protection trusts are most commonly established in a jurisdiction that provides for favorable asset protection laws. In Indiana, asset protection trusts provide benefits such as prohibiting creditors from accessing or seizing several different asset types, including cash, real estate, and other investments. These trusts also limit the ability of potential creditors to access trust assets by requiring their consent if they wish to do so. Asset protection trusts are particularly useful for individuals who want to ensure that their assets are protected from lawsuits or other potential creditors. Although these trusts provide many protections, it’s important to note that not all creditors are barred from accessing the assets in an asset protection trust. Additionally, the laws surrounding asset protection trusts can vary from state to state, so it’s important to understand the specific laws of the state in which the trust is created.

Related FAQs

What is an irrevocable trust?
What is a family trust?
What is a testamentary trust?
What is a trust amendment?
How do I distribute assets from a trust?
What is a trust fund?
What is the difference between a revocable and an irrevocable trust?
What is an irrevocable trust?
What is a trust agreement?
How do I terminate a trust?

What is an asset protection trust?

Related FAQs

Related Blog Posts