FAQ: What is a Trust?

Select

EnglishSpanishChinese

»Asset Protection

»Insolvency Planning

»Integrated Estate Planning

»Business Formation

»Corporate Services

»Yacht Registration

What is a Trust?

A trust is a fiduciary relationship that is created with respect to property or assets. It is a basic concept where one or more persons manage property or assets for the benefit of others. The person that creates the trust is known as the "Settlor" or "Grantor". The person who manages the Trust is known as the Trustee. The persons for whom the Trust is created are known as the Beneficiaries. An Asset Protection Trust is aptly named because a Settlor who transfers assets into a trust can by the design and location of the trust achieve a higher level of protection than other devices may offer.

What is a Trust?

What is the purpose of an Asset Protection Trust?

Do we want a Foreign or Domestic Trust?

What is a Domestic Asset Protection Trust?

What is a Foreign Asset Protection Trust?

Are my life long accumulated assets susceptible to creditor attack?

How does an Asset Protection Trust operate?

Who manages or administers the trust and the trust funds?

Does an Asset Protection Plan make sense for me?

FAMILY OWNED LLC's

One of the more common tools utilized by asset protection lawyers is the Limited Liability Company (“LLC”). As suggested by its name, this entity offers liability protection to its Members, including superior insulation from a piercing of the corporate veil than afforded by a corporation. When those involved in the asset protection plan are members of a family, a more particular LLC can be utilized, the Family Owned LLC (“FLLC”). The FLLC is not only a means to protect family assets, but can also facilitate estate-planning objectives.

Once the Members and Managers of the newly created FLLC are established, the entity is typically funded using of an asset transfer. An FLLC is owned by its “Members,” whil...

Read more