The Elliot Legal Group, P.A. Offices | Fort Lauderdale and Boca Raton

3101 N. Federal Hwy., Suite 609,
Fort Lauderdale, Florida 33306

Our Lawyers are Licensed and Providing Representation in the Following Locations:

Florida, Washington D.C., England, and Wales

Fort Lauderdale

754-332-2101

Boca Raton

561-832-8288

Contact Our Firm

NOTE: Fields with a * indicate a required field.
Name *
Email *
State
ZIP
Phone *
How would you prefer to be contacted?
E-Mail
Phone
No Preference
Briefly describe your legal issue. *

DisclaimerThe use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

I have read and understand the Disclaimer and Privacy Policy.

Contact Us

How Can Trusts Be Used to Protect Assets?

 Posted on June 07,2024 in Business Law

Fort lauderdale, FL asset protection lawyerIf you are a business owner, or if your family has substantial wealth, you will likely want to take steps to make sure your assets are protected. Trusts are a powerful tool that can be employed to safeguard your assets against potential risks and make sure you and your loved ones will have the financial resources you need in the future. An experienced attorney can provide guidance on the best steps you can take to ensure that your assets are well-protected.

Why Protecting Assets Is Important

There are several reasons why you may need to take steps to protect your assets, including:

  • Legal claims and lawsuits: If someone takes legal action against you or your business, your personal assets may be at risk of being seized to satisfy judgments.

  • Creditors: If you or your business have outstanding loans, and you fail to make payments as required, creditors may seek to claim your assets to recover these debts.

  • Divorce: If your marriage ends in divorce, your marital assets will be divided between you and your spouse, potentially leaving you with significantly fewer resources.

  • Financial mismanagement: Protecting assets can safeguard them from being mismanaged by family members or other beneficiaries who may not be financially responsible.

Benefits of Using Trusts for Asset Protection

As you take steps to protect your assets, trusts can provide several benefits, including:

  • Preservation of wealth: Trusts can help ensure that your assets will be preserved and passed down to future generations.

  • Protection from creditors: Properly structured trusts can shield assets from creditors and legal claims.

  • Control Over distribution: Trusts allow you to specify when and how assets will be distributed to beneficiaries, providing greater control over your wealth.

  • Privacy: Trusts can keep your financial affairs private, as they are not subject to public probate proceedings.

Options for Creating Asset Protection Trusts

There are different types of trusts that can be used for asset protection, including:

  • Domestic asset protection trusts (DAPTs): These trusts may be established under the laws of certain U.S. states that offer statutory protections for trust assets. You may be a beneficiary of a trust, ensuring that you will be able to use your assets while still providing a level of protection against creditors. However, it is important to note that the effectiveness of a DAPT can vary depending on the state’s laws and the specifics of your situation.

  • Foreign asset protection trusts (FAPTs): These trusts may be established in foreign jurisdictions that have favorable asset protection laws. They often provide stronger protection compared to domestic trusts, as they are subject to the laws of the foreign jurisdiction rather than U.S. law. However, FAPTs can be more complex and costly to establish and maintain.

  • Spendthrift trusts: These trusts are designed to prevent beneficiaries from squandering their inheritances. A trust may include provisions that restrict the beneficiary’s ability to transfer or pledge their interest in the trust assets, thereby protecting the assets from creditors.

  • Irrevocable trusts: By creating a trust that cannot be altered or revoked once it is established, you will effectively remove the assets in the trust from your estate, which can provide significant protection from creditors and legal claims.

Contact Our Fort Lauderdale Asset Protection Attorney

When you own substantial assets, it is crucial to take steps to protect your financial security and your legacy. At The Elliot Legal Group, P.A., our Broward County, FL trusts lawyer can work with you to create a customized asset protection strategy. Contact us today at 754-332-2101 to schedule a consultation and learn more about how trusts can safeguard your wealth for the future.

Share this post:
Back to Top