Broker Check

Asset Protection Trusts

November 30, 2023

An Asset Protection Trust is a legal tool that enables individuals to help protect their assets from potential creditors or legal claims. By transferring ownership of assets to a trust managed by a trustee, individuals gain protection and control over their wealth.

In this post, we will explore the key benefits of an Asset Protection Trust.

Benefit 1: Protection from Creditors

Firstly, an Asset Protection Trust can provide significant protection from creditors. By placing assets in the trust, individuals can help shield their assets from potential claims arising from personal or professional liabilities, including lawsuits, bankruptcy, or divorce. This protection is particularly valuable for high-net-worth individuals and business owners who face increased risks of legal actions.

Benefit 2: Tax Benefits

Secondly, an Asset Protection Trust can offer compelling tax benefits. By transferring assets to the trust, individuals may reduce estate and gift taxes, as the assets are not considered part of their taxable estate. Additionally, a well-structured trust can also lead to reduced income and capital gains taxes, allowing for more efficient tax planning."

Benefit 3: Flexibility

Thirdly, Asset Protection Trusts can offer a high degree of flexibility. Individuals can transfer various assets to the trust, such as cash, real estate, stocks, bonds, and other valuable properties. This diversity of holdings can help protect their wealth and reduces the risk of significant losses in the event of financial challenges.

Benefit 4: Enhanced Privacy

Lastly, an Asset Protection Trust provides enhanced privacy. Assets transferred to the trust may be shielded from public scrutiny, offering privacy benefits, especially for high-profile individuals who wish to keep their financial information confidential.

An Asset Protection Trust is a valuable legal instrument that can provide protection, tax benefits, flexibility, and enhanced privacy for individuals.

Securing your financial future and protecting your loved ones' interests starts with proper planning. To see if an Asset Protection Trust can benefit your financial future, please use the link below to schedule your meeting!

Contact Us

Note: Investment strategies and specific investments mentioned may not be suitable for everyone. Individual decisions should be made after careful consideration of one's financial objectives, situation, and needs. This information is not intended as a personalized recommendation. Seeking advice from a personal investment advisor is recommended.

Please note that representatives do not offer tax or legal advice. Discussions related to taxes are purely informational, not exhaustive, and should not be interpreted as legal, tax, or accounting advice. It is advisable for clients to consult with qualified legal, tax, and accounting advisors as needed.

Securities and investment advisory services are provided through registered representatives of MML Investors Services, LLC, a member of SIPC.