In today's society, protecting your hard earned assets from unforeseen threats is a top priority. Whether you have accumulated wealth through years of diligent work or inherited a valuable estate, the fear of losing it to creditors, lawsuits or other unforeseen circumstances can be daunting. In this article, we focus on one specific tool which can serve as a method of protection for your assets; trusts. Below, we will explore the aspects of trusts and guide you through the various ways to protect your assets in order to secure your financial future.
Understanding Trusts
A trust is a legal entity designed to manage your assets and provide individuals with a secure approach to safeguarding their wealth. One party, known as the grantor, transfers ownership of assets to another party, called the trustee. The trustee will hold and manage these assets on behalf of a third party known as the beneficiaries. A trust can protect your assets from threats such as creditors and lawsuits that may target the grantor. Additionally, certain types of trusts including an irrevocable trust provides an extra layer of protection since the assets within the trust are permanent. By removing assets from personal ownership and placing them under the protection of a trust, you can significantly reduce your vulnerability to risks and ensure that your hard earned wealth is preserved for yourself and loved ones.
Selecting The Right Trust For Your Needs
When choosing a trust, the decision is dependent on your specific needs and the level of asset protection you seek. A revocable trust provides the most flexibility as the grantor has the ability to amend or revoke the trust during their lifetime. This means that the grantor has control over the assets placed in the trust. However, the assets will remain within the grantor’s reach therefore may still be vulnerable to seizure in the event of financial liabilities such as debt, or lawsuits against the grantor. Another trust option would be an irrevocable trust, which offers a higher level of asset protection. With an irrevocable trust, the assets transferred into the trust are permanent and out of the grantor’s control. Placing your assets in an irrevocable trust protects them from potential threats, making it a better option for adequate asset protection. Consulting with an experienced attorney, such as Attorney Inna Fershteyn, who specializes in trusts and has over twenty years of experience can assist you and your family with making the decision that is best for you.
Probate Process
Placing your assets in a trust can also be an excellent choice for securing your assets from seizure because it will skip the probate process. The probate process distributes one’s estate accordingly after their death. Unlike assets subject to probate, which can be time consuming, expensive and public, trusts offer a discreet and efficient way to preserve your financial legacy. Holding your assets in a trust shields them from potential creditors and safeguards them from seizure. By bypassing the probate process, your assets will be immediately transferred to the designated beneficiaries, avoiding lengthy delays and unnecessary expenses.
In conclusion, trusts serve as a strategic and versatile approach to shield your hard earned assets from seizure. Through the establishment of trusts, you can isolate your wealth from personal liabilities, protect against potential creditors and provide a seamless transfer of your assets to your beneficiaries. Seeking expertise of an experienced professional who can guide you through the lengthy estate planning process is essential. With her knowledge and specialized practice in estate planning, Attorney Inna Fershteyn can assist you with securing your finances. Don’t leave the security of your wealth to chance- schedule a consultation with the Law Office of Inna Fershteyn at (718) 333-2394.