You are one weird scenario away from being sued by some crazy person. Yes, you. There are enough crazy people in this world that it happens all the time. You don’t need to be famous or even super wealthy. There is even an industry built around creating a retirement fund by winning a lawsuit. This problem gets worse and worse with every passing day.
But really, how often does this happen?
All the time. We are not litigation lawyers, we are estate planning attorneys, but if you spend a day in a courtroom, you will see that these suits happen all the time. You cannot see the future or prevent someone from coming after you, but you can prevent them from successfully taking your legacy away from you. It’s called an asset protection trust.
So, what is an asset protection trust anyway?
An asset protection trust is a highly specialized type of irrevocable trust designed to protect your assets from creditors, including lawsuits. Essentially, by transferring assets into the ownership of your irrevocable trust, you no longer own them directly. These funds, properties, and other assets are then shielded from creditor lawsuits. This is a great way to protect your legacy and provide for your family now and in the future event of your passing.
Why doesn’t everyone do an asset protection trust?
When we explain the difference between an asset protection trust and a more basic trust to our clients they all typically ask us the same question: “Why doesn’t everyone do an asset protection trust?” We believe that the answer is that either they don’t know enough about asset protection trusts, or because an asset protection trust may initially cost more than other living trusts to create.
At Voyant Legal, we see the additional cost for an asset protection trust as a logical, wise investment of money. Consider the numbers. Let’s assume that an asset protection trust costs between $1,000-$2,000 more to create. If you create your asset protection trust when you are middle aged and live for another 30 or more years, it will cost less than $70 per year (Or around five bucks a month) for the peace of mind that comes with knowing your assets cannot be lost in some unforeseen lawsuit over who knows what.
Conclusion: Asset protection trust, asset protection trust, asset protection trust.
Honestly, we can’t say it enough. Meet with your trusted estate planning attorney today. Well, as soon as you can get an appointment anyway. Time is of the essence. If you are living in Utah (where we practice law) and if you bought your home before 2020, your net worth has recently increased significantly. We cannot give legal advice on this blog, but we can urge you to meet directly with someone who can give you legal advice and help you protect your future by putting your major assets into an asset protection trust. You won’t regret it.
To listen to our full podcast about Gweneth Paltrow’s ski accident trial, click here.