Protecting your assets while you are here and living

You may be aware of the fact that family trusts are designed to protect your assets so that you can pass them along to intended beneficiaries in the event of your death (or at another time of your choosing). You might also know that they are different from wills in a number of ways and that they benefit you whether you decide to use trusts in addition to a last will and testament or instead of one. What most people don't have a solid understanding of is how trusts ensure asset protection.

Three essential elements

A trust is made up of three essential parts: the assets held in trust, the named beneficiaries the assets are being held for, and the trustee that will administer the trust according to the terms set forth in the trust deed. From the time you create your trust, the assets being held are protected in a variety of ways until such time as they are transferred to beneficiaries (generally at the time of your death).

Creating protection from creditors

Let's say you decide to create a family home trust to protect your main asset. You may do so as a way to ensure that your home is protected so that it can be passed along to a spouse, children, or other beneficiaries, especially if you suspect that there may be other claimants. As your main asset, your home is generally the first thing creditors will go after in order to recoup debt. Whether you have a business or you carry personal debt, you want to make sure that creditors can't come after your family home in the event of your untimely death (i.e. before you pay off your debts).

Removing assets from your personal ownership

By setting up a family home trust, you are essentially removing this valuable asset from your estate and placing it beyond the reach of other claimants. Only those named as beneficiaries have claim to assets placed in trust for them. In addition, setting up a home trust is easy and affordable these days. With a reputable online company with industry experts, you could set up a family home trust in just about fifteen minutes and at relatively little expense.

So why not learn more and register with TrustUs today.

After all, it's in your hands.