What are Asset-Protection Trusts?
If you want to protect your assets from creditors or to alleviate the effects of taxes or divorce, a domestic asset-protection trust can help you feel secure. Trusts have a variety of uses and protecting your assets is just one of them. When you set up an asset-protection trust, you will be protected from creditors and others who might claim you owe them money.
Here at the Alder Law Group, we have the knowledge and expertise to help you set up a domestic asset-protection trust. While there are many other ways to protect your assets, setting up a domestic asset-protection trust is one of most effective methods of doing so.
Before you give our Salt Lake City law office a call, let us fill you in on the ins and outs of these trusts and how to set one up in Utah.
Types of Domestic Asset-Protection Trusts
In 2013, Utah established a new asset-protection trust statute. This provides a great degree of protection for those who create and fund an irrevocable trust. Irrevocable trusts are far more effective than revocable trusts and they are recommended for this reason.
Revocable trusts, while effective for their intended purposes of general estate planning, donot protect against creditors. This is because the person who created and funded said trust is able to amend it. This allows creditors to compel distributions from the trust if they obtain a judgment against the grantor.
Irrevocable trusts, on the other hand, provide greater protection. This is because an irrevocable trust is created by someone other than the beneficiary of the trust. However, even irrevocable trusts aren’t completely foolproof.
Who Can Benefit from A Domestic Asset-Protection Trust?
Contrary to popular belief, domestic asset-protection trusts are not merely for those with a high net-worth. While these persons can obviously benefit from a trust like this, many people in high-liability professions have started funding and creating them as well. Some of the most common high-liability professions are:
- Doctors: Doctors and physicians are often the targets of malpractice lawsuits.
- Contractors: If something goes wrong on the job site, the contractor is likely to be held liable.
- Accountants: Accountants and other financial advisors, like stockbrokers, are charged with the responsibility of protecting their client’s finances. If something goes wrong, the blame could be put on them.
While these professions come with high-liabilities, there are many other professions and situations that can benefit from a domestic asset-protection trust. If you feel you can benefit from one, then odds are you are most likely correct.
Protect Your Assets with the Alder Law Group
If you have a high net-worth or work in a high-liability profession and are interested in setting up an asset protection trust in Utah, we here at the Alder Law Group can help. You can contact our Salt Lake City office here or call us at 801.463.2600.