Asset Protection comes in many forms and with many levels of protection. Creditors and lawsuit judgments can gain access to certain assets you have, or will provide to your beneficiaries, if they are not placed in an appropriate trust. For example, an outright gift of cash to an heir is completely unprotected and subject to a creditor obtaining it for outstanding debts. However, the same amount of cash provided to your heir in a trust that only provides for health, education, maintenance and support, can provide protection from creditors.
Similarly, an heir that spends money as fast as he gets it would burn through a gift of cash. But if the cash is provided in a trust that only permits limited or periodic withdrawals, the gift could last the heir’s lifetime. Assets cannot be 100% protected, but there are various ways to structure trusts to provide a level of protection you are comfortable with. The Schwartz Law Firm can explain these methods and help determine the best course of action for you.