Asset Protection Trust
An Asset Protection Trust (APT) is a strategic legal tool used to safeguard assets from creditors, lawsuits, and other financial risks. Here are 10 key times when individuals should strongly consider setting up an Asset Protection Trust:
1. Before Starting a High-Risk Profession or Business-
- Doctors, lawyers, business owners, and professionals in litigation-prone industries should protect personal assets before they face legal threats.
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- If you're entering a marriage with significant assets, an APT can help shield them in case of a future divorce settlement.
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- If you have real estate, investments, or a business, you should establish asset protection before you become a high-net-worth individual.
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- If you're investing in real estate, acquiring a business, or making other high-stakes financial moves, an APT can shield your assets from potential losses.
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- Whether due to professional liability, personal injury claims, or creditor issues, setting up an APT in advance helps protect assets from legal judgments.
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- APTs allow you to pass down wealth while preventing reckless spending, creditor claims, or potential divorcing spouses from accessing the inheritance.
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- To protect assets from Medicaid spend-down requirements, an APT should be set up years before you need long-term care to ensure eligibility.
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- APTs help reduce estate taxes, protect assets for future generations, and prevent lawsuits from disgruntled heirs.
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- In times of economic downturns, potential bankruptcy, or market crashes, an APT ensures that creditors cannot reach protected assets.
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- An APT can protect assets from inheritance disputes, ensuring that your children from a previous marriage receive their rightful share.
