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How does an asset protection trust work?


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How does an asset protection trust work?

Question: How does an asset protection trust work?

Answer: An asset protection trust works to basically hold the assets in the trust, and the trust provides that the monies will only be distributed to you or other parties as directed under the trust. Typically it has a spend thrift clause in it that says that under no circumstances will that money be used to satisfy your judgment creditors. The asset protection trust typically must comply with the state law or the law of the country in which the asset protection trust is based and you need to be careful to make sure you are following all of the state or international laws that you are trying to use to protect the assets.

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