Asset protection trusts are great tools to protect assets. There are many states that allow these trusts. Before, it was required for wealthy people to have offshore trusts. While this did protect their assets, it became very expensive and time consuming due to additional reporting requirements. Some states that now support asset protection trusts include Rhode Island, Alaska, Delaware and Nevada.
The great thing about these trusts is that you do not need to be a resident of the state to buy into one. These trusts work to protect your assets by placing a portion of your assets in the hands of a trustee. The assets that are placed in the irrevocable trust will not be able to be touched by creditors. You may popover to our official website,if you want to have more knowledge about asset protection and its strategies.
In addition, the trusts can allow you to shield assets from your children. In order to set up this type of trust, there are some requirements that must be met. The trust must be irrevocable, it must have an independent trustee, distributions can only be made at the discretion of the trustee, the trust must have a spendthrift clause, some of the assets must be located in the state in which the trust is in and the documents pertaining to the trust must be located in the same state as the trust.
If you are a business owner, you may benefit from accounts-receivable financing. This is when you are allowed to borrow money against the receivables of the business and then place the money into a separate account that is non-business. This tool deters creditors and protects assets that would typically be attacked.