At Sumsion Business Law, we want you to be informed about our areas of practice before you schedule an appointment. Below, we give some brief background on asset protection and tax matters. Please contact us for more information.
The personalized estates plans we draft at Sumsion Business Law reflect your wishes and desires in every way. Another way we accomplish this is through the creation of asset protection trusts.
What is an asset protection trust?
An asset protection trust is a vehicle that holds and shields an individual's assets from creditors. In this instance, a creditor is someone who wins a lawsuit against you. By having an asset protection trust, your included assets will be protected.
What states allow for these trusts to be created?
The laws of Alaska, Delaware, Hawaii, Missouri, Nevada, New Hampshire, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Virginia and Wyoming permit domestic asset protection trusts. If you do not live in one of these states, we can still assist you in forming your own personalized asset protection trust in the state of Utah.
Who should consider creating an asset protection trust?
Such trusts are most often established by individuals in high-risk occupations, and very wealthy individuals that feel they may be targets for creditors due to their net worth. We understand that even if you do not fit perfectly into either of these categories, an asset protection trust is still a very good option.
What tax benefits come with an asset protection trust?
Most people believe that an asset protection trust can exempt an individual from all sorts of taxes. In some specific situations, this can be true. In general, however, an asset protection trust is not a plan to save on taxes, but rather is a tax-neutral vehicle for your assets.