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The USA Trusts: Asset Protection And Estate Planning
We will guide you through the whole process of establishing the USA asset protection or estate planning trust. Having analyzed your situation and objectives, we will advise you on the best trust structures, discussing your different options of combining all the advantages associated with each type of trust in each US state.
THE USA TRUSTS
The USA Trusts offer a great combination of security, convenience, and confidentiality. Trusts in the USA offer additional valuable advantages for non-US tax residents, providing them with the best combination of security, tax planning and confidentiality. On the other hand, for US tax residents, the trusts can be a valuable tool for estate planning purposes, providing tax relief and protection against creditors.
The USA Trusts
The trusts in the USA can play a crucial role in the individually tailored integrated asset protection strategy
Where to Set It Up?
Analyzing the situation and making recommendations on the jurisdiction where to set up the USA trust
Trust Agreement
Developing the trust agreement and other documents necessary to establish a trust in one of the US States
Trust Establishment
Setting up a trust in one of the US States after the discussion of all the pros and cons upon the client’s request
Any US trust must comply with the federal laws and the laws of the State where it is established. There are codified laws on certain types of trusts on the federal level, including some general requirements. One of the most important is that the trust’s assets must come from legal sources and be free from illegal transactions or activities. At the same time, the main bulk of regulations on trusts are adopted on the state level.
That is why it is so important to choose the proper State where to establish your trust. Of course, the choice will depend on many things, such as whether you are a US tax resident or not, what are the purposes of your trust, what kind of trust you are going to set up, etc. Seventeen States adopted asset protection laws to attract both US and foreign investors to set up trusts there. The most popular among them are Delaware, Nevada, Wyoming, South Dakota, and Alaska.
Trusts in the USA can play an essential role in any asset protection strategy. Of course, situations may vary dramatically depending on the client’s needs. However, in any case, everything should be planned and implemented well in advance. Otherwise, it will be much harder to protect your assets against creditors and avoid potential challenges in court.
QUESTIONS & ANSWERS:
An asset protection trust is a special legal vehicle, which purpose is to shield the trust assets from creditors and other unfriendly legal challenges.
An asset protection trust is usually an irrevocable trust, which means that the assets are transferred to the trust permanently and cannot be revoked. Thus, the assets do not belong to the trust’s settlor. Instead, they belong to the trust and are under the trustee’s management. Accordingly, the settlor’s creditors cannot rich the trust’s assets because the assets do not belong to the settlor and are beyond his control.
Yes, most of the asset protection trusts are irrevocable.
Yes, it can. You can create a revocable trust, which becomes irrevocable when you pass away. Then the irrevocable trust will protect the assets from lawsuits. This kind of trust will also reduce your estate taxes.
The best State to set up an asset protection trust would be one of the 17 states with special legislation on this type of trust. The most popular states are Delaware, Nevada, South Dakota, Alaska, and Wyoming. You will need to contact an attorney to make your decision on that.
