Seven Trust-Based Asset Protection Strategies for You and Your Family

Some assets are not at the mercy of your creditors, such as retirement accounts under the protection living will and trust planning of the Employee Retirement Income Security Act of 1974 (ERISA). These include tax liens, mechanics liens, alimony judgments and child support claims. That’s because it’s only worth it if you have significant assets, though some events cannot be protected against. If you have a lot of debt and few assets and you are subject to a lawsuit, it may be better to take bankruptcy than set up an asset protection plan. It’s too late to employ asset protection strategies after a child is hurt on your property and the child’s parents sue you or you are at fault in a serious car accident.
Common Asset Protection Too


If you need more information, please contact us so we can connect you with one of our CPA advisors who will be committed to your business and personal success. It’s important to examine these in detail with your financial advisor to ensure that the type of trust you establish will best protect your assets going forward. These are just a few options to consider as you review whether creating a trust would be beneficial for you and your heirs. This is why offshore trusts are typically funded with cash or securities that can be readily moved, rather than with real estate or other property that could be seized by a U.S. court.
Relief from financial waste
The benefit is that, because the property is no longer yours, it’s unavailable to satisfy claims against you. We discussed tax planning, avoiding probate, and steps to provide for financial management if either or both spouses become incapacitated. Clients should consult their legal and/or tax advisors before making any financial decisions. Bank of America, Merrill, their affiliates, and advisors do not provide legal, tax, or accounting living will and trust planning advice. A trust could help with this by, say, allowing your second wife to benefit from trust income during her life, with the principal reverting to your children from your first marriage upon her death.
You can transfer nearly any asset into a trust, including investment accounts, a personal residence, commercial real estate, private business interests and a family limited partnership. But selling the business would not only result in a big tax bill, but also likely leave them each with an estate subject to sizable estate taxes. But if you experience health problems or any form of incapacity, a trustee you’ve named can step in and manage your finances.
Working with an Advisor: A Coordinated Approach
APTs can help structure the transfer of assets in a way that reduces the risk of loss through divorce settlements, creditor claims, or lawsuits involving beneficiaries. Among the tools that may be worth exploring, Asset Protection Trusts (APTs) are designed to help safeguard assets from future claims or legal disputes. Explore how asset protection trusts may help safeguard wealth from legal risks and support multigenerational planning as part of a broader estate strategy. An Heir Safeguard Trust ("HST") is specifically designed to protect your surviving spouse or children from future remarriage, lawsuits, creditors, or divorc

Comprehensive Financial Planning
Then, if one sector of the economy weakens, not all your investments will be subject to that particular weakness. Clasen recommends having money automatically transferred into a savings or money market account so you don’t miss it. "When you understand your monthly cash flow, you can better understand your financial ability to save for emergencies," he says. Clasen recommends having at least three to six months of living expenses on hand in a liquid savings account. Having money that’s earmarked for emergencies or future spending can help you better manage both unplanned events and your day-to-day cash flow. If you already have a financial plan in place, take time to review it annually.
Invest in insurance to protect family wealth
These efforts typically compound, so the more attention you give them now, the more money your heirs will have later. In estate planning, what you pass on is far more important than what you accumulate. Get your kids or heirs involved as early as possible to increase buy-in. Creating the family constitution is the first step, but it's not a document that you create once and file away for your heirs to read after you're gone. Without a shared understanding of why the wealth exists, heirs often default to spending it or using it in ways living will and trust planning the previous generation wouldn't have wante


A trust fund is an excellent way to ensure your assets are handled according to your wishes when you pass away. Once you’re happy with the contents of your trust fund document, it’s time to sign it. Although many people view trust funds as a tool reserved for those with many assets, creating a trust fund can be an important part of planning your estate, regardless of how much you own.
How to List and Transfer Property Into the Trust
U.S. Bank and its representatives do not provide tax or legal advice. Every trust is unique; that’s why it’s important to ask what you are entitled to within the trust. During this time, it’s important to understand your rights when it comes to these assets. The trustee will contact you to set up a meeting to go over the details of the trust documents. These steps can simplify the process so it goes as smoothly as possible. When you meet with your attorney to discuss drafting the terms of living will and trust planning the trust document, consider creating a power of attorney for any property or assets held outside of your trus