How can I protect my assets?
We work hard during our lives to build up assets of value, sometimes receiving assets ourselves that have been passed on through our own families. What we hope is that we too can pass these hard earned assets down through our bloodline to benefit the future generations.
What happens if the people we want to benefit from our assets are too young or inexperienced to properly manage and preserve the assets or their personal circumstances are such that the assets could be lost through divorce, bankruptcy, substance abuse, mental health issues or simply squandering the assets through bad decision making? What happens to assets left to vulnerable beneficiaries who may be susceptible to abuse from outside influences?
The concern is that if assets are given direct to beneficiaries that the assets will be lost or wasted. An asset protection trust is a trust set up either during a person’s lifetime or on death which can hold assets to be managed by carefully selected trustees. Capital and/or income from the assets held in the trust can be used for the people you wish to benefit as and when their circumstances require it but with the protection of the trustees managing the trust fund.