What are the advantages of an asset protection trust?

An asset protection trust offers a perfect solution for holding certain assets (life insurance policies, cash investments, real estate, etc.) for a specific beneficiary, which can be a group or a single person. There are several different advantages to transferring personal belongings to a trust. Here are several of the key benefits that might be worth considering:

Protection of fees related to care homes: If an elderly relative needs to go to a long-term residential home, it is often necessary to personally cover the associated costs. A common way for local authorities to receive funding for long-term care is to essentially inherit assets, with their primary asset related to the home.

By taking action at an early stage that is long before any potential attendant care is required, you can protect the home and ensure that the full benefit of ownership passes to the chosen family members.

A highly effective solution for resolving inheritance-related issues: An asset protection trust can facilitate the transfer of assets in the event of death (non-transfer of ownership), and ensures that assets are delivered to the persons identified in the trust. moment. time of writing the will. If family circumstances are calm, where stepchildren may turn up, or if a marriage has broken down, you’ll likely find that using a trust can make the process go more smoothly.

Helps protect the estate from creditors – In a situation where a beneficiary of a will is in costly financial difficulty with debt, any money automatically transferred through the information provided in a will could be seized by creditors seeking recover outstanding debts. . But, since assets transferred to a trust will remain a part of the trust even after death, creditors will not be able to collect on them and they will remain wholly owned by the beneficiaries.

Making sure those in need get the right help – Another quality aspect of trusting asset protection trust companies is helping beneficiaries who may not be able to fend for themselves. Whether this relates to someone who often makes poor decisions or is physically disabled, a trust can provide specific guidance on how the benefit is transferred to an individual to ensure they receive long-term care and safety.