Norwich Future liabilities with an Asset Protection Trust

Assets Protection Trust

Assets Protection Trust is a vehicle for holding individual assets and shielding them from one creditor. In simple terms Assets Protection Trust is a legal entity that you create with your attorney by means of written documents in which you authorize trustee to manage your assets transferred to the trust for the purpose you define in the trust document. While your trustee holds legal title, your designated beneficiaries retain beneficial title. Your trustee is legally obligated to operate within the trust and applicable law.

Types of parties for the Asset protection

Assets Protection Trust helps you to accomplish your trust planning and your goal of life. Basically there are three parties to the trust.

Grantor: also called as settlers of the trust or trust, and is a person who creates and funds the trust.

Beneficiaries: is a person who receives the benefits from the trust, as enumerated in the trust document.



Trustee: Is a person who holds legal title to the trust property, and has duty to act in best possible interest of the beneficiaries and as per terms of the trust document and prevailing law of the land.

You can create assets protection trust by executing document called trust agreement which should have details of beneficiaries and trustee and other instruction. It shall disbursements benefits to the beneficiary and other terms relating to the duties of trustee etc. Funding is an important part in the Asset protection trust. You can fund the trust with any kind of assets, including your real estate property, shares, stocks, bond, cash, and bank deposits etc.

With your assets with Assets Protection Trust, it is difficult for your creditors to seize or access to your assets, although it has a complex regulatory requirements, such as irrevocable and spendthrift clause. In America apart from few states other states do not permit the operation of Assets Protection Trust in their state because of its complexity.