When you are wealthy, there are people who will want some piece of the pie even when they do not deserve it. Therefore it is vital if you consider securing your property. Asset protection trust is a way of protecting your assets from creditors and competitors against lawsuits threats. It is also a written agreement where your property is transferred to a trust company.
The trustee is able to manage their properties even after they have been transferred to the trust company. But the control of your assets is limited by the company also it has some power in controlling your assets and one thing about trust company is that once you decide to put your property under them the process is irrevocable.
In both there is discretion, only two parties know what you are you to protect, your beneficiaries will benefit at the end of the day but only when you are no more. It is advised that property should be distributed in a fair manner to avoid conflicts and hatred; you would never wish your family in chaos after you are gone so be wise in your distribution everyone is entitled to something at least.
It is very unreasonable for children to assume that they have a right to inherit their parents property. These are the kinds that would abandon their parents at an old age and forget them and concentrate on how to spend their money. That is why nobody should make an assumption on their wealth that it will be automatically taken care of. That is why safeguarding your property for yourself, family and a generation to come is very important.
In a will, matters such as funeral, education for your children or any other thing you may want to address is allowed while the latter is all done by a trust company. Basically these companies will do everything for your beneficiaries before you die. This is also another case where will ask yourself which one is better for you.
Who governs these trusts? A question like this maybe asked and well the answer to this is the jurisdiction. One major requirement of a trust of this kind is that the trust should be irrevocable and spendthrift. In addition there should be another trustee available and is referred to as a resident trustee.
Wills are known to be flexible, why am I saying this. It caters for all people from the children to the spouse, relatives and also friends but an asset protection will only cater for your spouse and you must have been married, children but only older children as it does not cater for minor children so again be careful on which way you want your property to be distributed and to whom do not let your property go into the wrong hands and leaving your family in problems.
Information is power. It is good to be well informed and think of others especially the ones you love dearly that is, your family. Do not leave them suffering ones you are gone. Consults lawyers and friends and get all the information you may need about securing your property for your future and the future generation. Ensure your legacy is kept for a long time.
Read more about Choosing A Will Over An Asset Protection Trust.
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