Funding Your Trust To Protect Your Assets From Creditors

You can use a trust to protect your assets from creditors. But, in order to do so, you need to fund your trust with the assets you would like to protect. Doing this isn’t always easy.

By going over the importance of funding your trust to protect your assets from creditors, and speaking with a Florida estate planning lawyer at Millhorn Elder Law Planning Group, you may have an easier time giving your beneficiaries the assets meant for them.

How Can A Trust Protect Your Assets From Creditors? 

A trust can protect your assets from creditors by putting those assets under the ownership of the trust. This means that, if you put certain assets in a trust, those assets will no longer belong to you. Legally, that is.

Just as an example, if you put your car and computer in a trust, those items will belong to the trust. You may still have them at your residence – and you may still be using them – but these items will belong to the trust. This creates a layer of protection that prevents creditors from taking these assets.

If your assets are in a trust, your creditors will, in most cases, be unable to access them. The reason for this is simple: those assets don’t belong to you and your creditors can’t take assets from other entities to satisfy your debts. 

Why Do You Need To Fund Your Trust With Specific Assets In Order To Protect Them? 

You may want to give your beneficiaries the money in your financial accounts, the car you own, the house under your name, and the electronics you own; among many other possibilities.

If the above is true, you can name beneficiaries for these items, using your will. But, if you do this, those assets may still be considered yours, which makes them vulnerable to creditors. Putting them into your will can help your beneficiaries get them, but it won’t protect them from creditors.

On the other hand, if you transfer these items to your trust, those assets will no longer be yours. They will belong to the trust. And, in belonging to the trust, your creditors will not be able to access them. 

How Can A Lawyer Help? 

A lawyer can help you develop a trust that satisfies your estate planning needs. Developing this trust can make it much easier for you to protect your assets and ensure that your beneficiaries receive them.

On top of that, a lawyer can help you fund your trust. You can go over the assets you want to put into your trust and your lawyer will help you put those assets into the trust. This isn’t easy, but a lawyer can help you.

Speak With A Florida Estate Planning Lawyer Today

If you would like to develop a trust that protects your assets from creditors, you may want to work with someone who can help.

Speak with a Florida estate planning lawyer today. We will go over your estate planning wishes and help you develop a trust that protects your assets.

Sources: 

law.cornell.edu/wex/trust

law.cornell.edu/wex/beneficiary