In estate planning, trusts serve as a way to pass on wealth to the next or even subsequent generations while avoiding the costs and complications of probate. This is because, since the assets are no longer held in your name when you pass, they do not require the probate process to change ownership. This reduces exposure and opportunities for conflict, two things wealthy families and big businesses, in particular, always prefer to avoid.

Because you can impose specific restrictions and protections when establishing a trust, they also give you more control over your assets and how they are used and spent, even long after your death. There are also a number of different types of trusts designed to accomplish specific estate planning objectives, such as generational trusts or special needs trusts, though most are revocable living trusts that only become fixed after death.

For asset protection, most trust administration law firms will suggest irrevocable trusts instead.

Why Trusts Are So Effective For Asset Protection

Once an asset is no longer owned by you, it is (mostly) safe from most threats. Whether you are concerned about creditors coming after your properties or money or about future liabilities, taxes, or any number of other risks to your fortune, a trust can be an exceptional way to protect them.

This is why irrevocable trusts, which transfer assets out of your ownership far more permanently and usually require an independent trustee (such as an attorney) to handle the trust administration, offer some of the strongest asset protection options available in this lifetime or those of your descendants. 

Even within irrevocable trusts, there are different kinds adapted to distinct purposes, assets and other considerations. Given that and their permanence, you do not want to try setting one up or managing one without the oversight of a skilled trust administration attorney, or their value in terms of asset protection may be negligible. 

At every stage of the trust process, from its creation to the funding and finally its execution, you need to be certain you are doing everything just right. Because trusts are inherently legal entities, their very existence is a matter of correctly applying the law, and their advantages are dependent on your ability to implement those laws creatively and accurately. This cannot be done reliably or efficiently without a lawyer.

Whether you are counting on the trust to pass on business assets and ensure the survival of your company after you die or using one to protect the wealth you leave for your child from their unwise decisions and creditors, the document you set up and the way you treat the assets given to it differ wildly with its purpose.

Finally, if you are entrusted to the management of a trust as a trustee or even one of many co-trustees, you have certain fiduciary responsibilities that you can be held accountable for. This is one reason why many trust grantors prefer to assign those responsibilities, at least in part, to an experienced trust administration lawyer. Even if they do not, and you find yourself in charge, working closely with a trust administration attorney can be an excellent way to protect both yourself and the assets from mistakes, challenges, or accusations of fraud and impropriety.

Alternatively, if you are a beneficiary of a trust, and believe the trustee may be acting without the best interest of the trust and its management, then you should also contact a lawyer with trust administration experience. Only someone with that experience will be able to tell you if you have grounds for litigation or other legal action against one or more trustees.

Need Help With A Trust? Contact Clark County Trust Administration Lawyer Kent Woods

Kent Woods | Skilled trust administration lawyer serving individuals, businesses, and families in Clark County, Nevada, throughout the United States and the world.

It does not matter whether you are a Japanese investor looking to protect US business assets or a family in California inheriting wealth from a wealthy parent; you need a good trust administration lawyer. As a specialist in trusts and estate planning, Kent P. Woods has worked with groups and individuals from around the world.

To schedule a consultation to discuss your estate planning or asset protection objectives or for any questions about a trust placed in your care, call (702) 703-1540 today to set up a discrete and private consultation to find out more about how a trust administration lawyer can help.