When you place assets into a trust such as a revocable living trust you can act as both the trustee and the beneficiary if you choose to do so. Because you have control of the funds creditors could possibly seek to attach resources placed into the trust, so these vehicles do not provide any asset protection.
In light of the above, is it in any way possible to benefit personally from resources placed into a trust while enjoying asset protection? The answer is yes. This can be done through the creation of a self-settled domestic asset protection trust, an instrument often called an Alaska Trust because the state of Alaska is one of the handful of states that allows for them.
With these trusts you can act as the beneficiary and receive distributions from the trust, but the assets are still protected from creditors and litigious individuals. The stipulations include the requirement that at least one of the trustees must either live in or maintain a principal place of business in the state of Alaska.
If you don’t happen to have a business savvy uncle who is an Alaskan resident you can simply use a bank or a trust company that is located in the state of Alaska.
If you would like to learn more about asset protection strategies such as the utilization of a self-settled domestic asset protection trust don’t hesitate to pick up the phone to set up an informative consultation with a good Hartford CT estate planning lawyer. Your attorney will gain an understanding of your unique situation and do what is necessary to keep your assets out of harm’s way.
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