A brief definition of Asset Protection Trusts: a trust that shields an individual’s assets from creditors. The state’s trust law makes it difficult for a creditor to seize assets, encouraging the creditor to avoid costly litigation and settle on terms favorable to the debtor.
There are times when a parent or other family member receives a settlement that is separate from the one received by an injured family member. For instance, a child may be injured during or after birth. As a result, the child is awarded money in compensation for the injuries. At the same time, the child’s mother may receive a settlement for her pain and suffering associated with the ordeal.
In the above example, the mother can be left traumatized and vulnerable after enduring litigation that takes several years to come to successful completion. In such circumstances, it may be advisable to put settlement these dollars into a Nevada Asset Protection Trust. This type of trust, also known as a Domestic Asset Protection Trust, allows the beneficiary to draw funds from the trust, while simultaneously protecting monies in the trust from creditors and those who might want to take advantage of the beneficiary.
Golden Fiduciary Services currently serves as trustee for a number of Nevada Asset Protection Trusts. We would be pleased to speak with you further about these trusts and to suggest names of attorneys who create these trusts.