Articles Tagged with Asset Protection; Trusts; Estate Planning

There is no denying that the COVID-19 pandemic has sent shockwaves through the Houston economy and beyond. Indeed, only time will tell the impact of the virus on countless markets. With this in mind, the importance of estate planning early on has never been as clear.

3 Major Advantages for Investors with Estate Plans

As an investor, engaging in the estate planning process early on has several key advantages. First, estate planning early on allows investors to identify the major arch of their financial goals and to act accordingly. Second, estate planning early on affords investors ample opportunities to adjust their strategy to reflect market and legal changes. Finally, estate planning can help young investors cultivate wealth early on.

Money bagA domestic asset protection trust (often called DAPTs, or just APTs) allows the settlor (the trust creator or grantor) to be a discretionary beneficiary of the trust, while at the same time assuring protection of trust assets from claims of the creditors.

Trusts are powerful legal machines and the Domestic Asset Protection Trust (DAPT) is a particularly intriguing machine, indeed. A recent article in Forbes sheds light on the concept and some of the finer points. The article, titled “How To Use a Nevada Asset Protection Trust To Safeguard Your Assets,” notes that in the same way all trusts are built they are not same, not all states treat them the same. It just so happens that a Nevada DAPT is a particularly well-crafted and well-situated machine for its purpose.

DAPTs in any state are a specific subset of trusts that protect assets by placing them within the safe confines on an irrevocable trust, but allow the owner to retain a level of control over the assets. In other words, it’s a way of having your cake and eating it too. It just so happens that trusts like these are also well-suited to multiple purposes and blend well into your overall plan for your assets during life and as part of your estate. In fact, a DAPT is never going to be your sole vehicle, because putting all of your assets into a protection trust is neither practical nor entirely defensible (it might not pass the sniff test for fraud). On the other hand, a DAPT may be your most precious holding.

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