The USA Trusts: Asset Protection And Estate Planning
We will guide you through the whole process of establishing the USA asset protection and/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.
TRUSTS IN THE USA
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 key role in the individually tailored integrated asset protection strategy
Delaware, Nevada or Else
Analyzing the situation and making recommendations on the jurisdiction where to set up the USA trust
Developing the trust agreement and other documents necessary to set up a trust in one of the US States
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, as well as the laws of the state where it is established. On the federal level there are codified laws on certain type of trusts, including some general requirements like that the trust’s assets must come from legal sources and free from any kind of 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 right state where to establish a trust. 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, aimed at attracting 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 important role in any asset protection strategy. 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 protecting your assets against creditors and avoiding 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 set up as 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 settlor of the trust and are not managed by him. They belong to the trust and are managed by a trustee. Accordingly, if the trust is set up right, the settlor’s creditors cannot rich the assets of the trust, 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 that have special legislation on this type of trusts. The most popular states are Delaware, Nevada, South Dakota, Alaska, and Wyoming. You will need to contact your attorney to make your decision on that.