Many people think that setting up a trust will protect their assets. Unfortunately, that is only half true. While funding a revocable living trust will get the assets out of your personal name, your assets may still be subject to creditors while you are alive, and to taxes and creditor claims upon your death.
Under a properly created trust for a married couple, upon the death of one spouse, his or her assets will be funded to the decedent’s trust. This is commonly referred to as the B trust (or below ground assets). The survivor’s share of the assets is funded to the survivor’s or A (above ground) trust. If the trust is properly set up, it will not be subject to estate taxes, creditor claims, spend-down for nursing home expenses or claims from new spouses or their children. Upon the death of both spouses (or upon your death if you are single), if provisions for a beneficiary trust are included in your trust, assets your beneficiaries receive can be protected from creditors, ex-spouses and spend-down for long-term care.
Haymond Law, offers the knowledge, skill and professional resources to help you protect all of your assets. At Haymond Law, it isn’t enough to tell you to fund a living trust, and then walk away. Laws change and certain provisions of trusts make it necessary to review and evaluate your assets periodically for maximum asset protection. If you have assets that you need to protect, it makes sense to work with a law firm that can build a comprehensive plan, which includes coordination with investment planning, tax accounting and long-term care planning.