Asset Protection Trusts

The protection of assets and their transfer to future generations is one of the most important financial activities you’ll undertake in your lifetime. Put a protective barrier around your assets. Let Denha & Associates, PLLC guide you in the appropriate circumstances.

Hallmarks of an Asset Protection Trust

Asset Protection Trusts (APTs) have been used for many years to shield assets from potential creditors, while preserving them for the use of the beneficiary. APTs have historically been formed in offshore jurisdictions such as Bermuda, the Isle of Man, the Cook Islands and various Caribbean nations. Gaining favor today, in an era of unprecedented litigation, domestic APTs have been authorized in 11 United States jurisdictions: Alaska, Delaware, Missouri, Nevada, New Hampshire, Oklahoma, Rhode Island, Utah, South Dakota, Tennessee and Wyoming.

Although domestic APT statutes vary in their details, they share some common traits:

  • transfer to irrevocable trust
  • resident trustee
  • specific incorporation of state law
  • inclusion of spendthrift clause
  • grantor’s retained interests
  • time periods for extinguishing claims

Integration with Other Planning – Working to Meet Your Objectives

Because an APT is not a stand-alone device, but rather a part of an overall wealth preservation and management plan, you’ll benefit from a legal team that can draw from the broadest experience possible to inform your strategy.

The diverse and seasoned team at Denha & Associates, PLLC works closely with you to create the right blend of investment counsel, insurance, income tax and estate planning to meet your objectives.

Protection in Adverse Situations

When this situation exists, again the team at Denha & Associates, PLLC has the experience to represent you. Asset protection plans generally are not effective when there is an outstanding judgment or a pending or expected claim.

Meeting the Needs of A Range of Professionals

Domestic APTs are used to defeat future potential creditors and are favored by those in high-risk professions. Denha & Associates, PLLC lawyers have worked with a diverse client base that includes:

  • doctors and dentists
  • individuals exposed to lawsuits arising from negligence, intentional torts and contractual claims
  • officers, directors and fiduciaries
  • real estate owners with exposure to environmental claims
  • real estate developers to avoid recurring risk to assets

How a Domestic APT Can Work for Your Benefit:

  • provides protection of substantial assets
  • allows the family to access funds as needed
  • permits structuring to avoid gift, estate, state and local income taxes on trust income, including large gains on sales of property
  • allows the family to be involved in distributions from the trust
  • allows the family to appoint and remove trustee
  • protects the family from claims such as divorce of a family member

Numerous other techniques exist in the Asset Protection arena to protect your hard work.  These include, but are not limited to the following:

  • Equity Stripping
  • Family Limited Liability Companies
  • Gifting Strategies
  • Inventory/Accounts Receivable Financing
  • Multiple Corporations
  • Sophisticated Trust structures to protect your interests
  • Captive Insurance Companies

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