How Can a Trust Attorney Assist with Asset Protection Planning?

How Can a Trust Attorney Assist with Asset Protection Planning?

Asset protection planning is the process of safeguarding your assets from potential risks, such as lawsuits, creditors, and other threats. A trust attorney can assist with asset protection planning by helping you establish a trust that can be used to protect your assets. Here are a few ways that a trust can be used for asset protection:

Revocable trusts: A revocable trust is a type of trust that allows the trust creator (also known as the grantor or settlor) to retain control over the trust assets and make changes to the trust terms. While a revocable trust does not provide asset protection from creditors, it can be a useful tool for estate planning, as it allows the grantor to make adjustments to the trust as their circumstances change.

Irrevocable trusts: An irrevocable trust is a type of trust that cannot be modified or dissolved by the grantor once it is established. This type of trust is often used to transfer ownership of assets out of the grantor's estate, potentially reducing taxes and other expenses. An irrevocable trust can also provide asset protection, as the assets in the trust are no longer owned by the grantor and are therefore not subject to the grantor's creditors.

Domestic asset protection trusts: A domestic asset protection trust (DAPT) is a type of irrevocable trust that is specifically designed to protect assets from creditors. DAPTs are only available in certain states and have specific requirements that must be met in order to be effective. A trust attorney can help you determine if a DAPT is a suitable option for your asset protection needs.

If you are considering creating a trust for asset protection, it is important to seek the guidance of an experienced trust attorney. The law firm of Doucet Co., LPA has a team of dedicated trust attorneys who can help you navigate the process and choose the right type of trust for your situation. Call us at (888) 200-9824 to schedule a consultation and learn more about your options.