What is a Malvern domestic asset protection trust?
Knowing what a domestic asset protection trust is can be an important part of estate planning, especially for people with significant assets that they want to protect from creditors and protect from a potential future divorce. Using a Malvern trust lawyer can ease your worries in regard to estate planning.
A domestic asset protection trust is an alternative means of shielding assets from creditors and former spouses from a foreign asset protection trust, but because the trust stays within the U.S., it can be less complicated and less costly.
Any type of trust is essentially a bifurcation of ownership. The trust has actual legal ownership of assets and possessions but only the beneficiary is free to use those assets, sometimes with conditions attached. The trust is then managed by a trustee who ensures that all requirements of the trust are met.
Assets must be transferred into the trust and the trust itself will be considered the owner of these assets while a trustee will manage them. However, it is possible to place no limits on what the trust can be used for, or how the money or assets can be spent or used, so the beneficiary (yourself) can access the trust and receive financial benefits whenever they choose for life.
However, because the trust owns the assets, they are not subject to division and divorce and creditors who take action against you to try to seize assets will be unable to access the assets held in the domestic asset protection trust.
For help with your estate planning or with domestic asset protection trusts, contact Unruh, Turner, Burke & Frees at (610) 240-0750.