Most people are well aware that, in most cases, accumulating assets requires hard work and dedication. Nonetheless, at Surprenant & Beneski, P.C., we often have to remind our clients that safeguarding those assets from risk is equally important. Whether you are planning for retirement, providing for your loved ones, or preparing for unexpected expenses, protective trusts offer a powerful solution to protect your wealth.
If you reside in Southeastern Massachusetts, now is the time to contact the knowledgeable asset protection attorneys at Surprenant & Beneski to discuss which type of irrevocable trusts are best-suited to your particular circumstances. We are highly capable in crafting protective trusts customized to meet your personal needs and goals.
What Assets Require Protection From
You may think that your assets are perfectly safe in the bank or invested wisely, but that is frequently not the case when you are passing those assets on to your beneficiaries. Any of the following may decrease your assets by a substantial amount unless your estate plan is set up properly. Ironically, the more wealth you have accumulated, the more you stand to lose due to:
Probate
Assets subject to probate can be tied up in lengthy court proceedings, delaying distribution to beneficiaries and incurring unnecessary costs. Protective trusts bypass the probate process, ensuring a smoother transfer of assets to heirs.
Taxes
Certain assets, such as real estate and investments, may be subject to estate taxes upon your passing. Protective trusts can include tax-saving strategies to minimize tax liabilities and preserve wealth for your beneficiaries.
Bankruptcy
If you or your beneficiaries face financial difficulties, assets held in protective trusts may be shielded from creditors during bankruptcy proceedings, safeguarding your legacy.
Lawsuits
In today’s litigious society, lawsuits are a constant threat. By placing assets in protective trusts, you can protect them from potential legal judgments against you, preserving your wealth for your beneficiaries.
Creditors and Predatory Lenders
Assets held in protective trusts are generally inaccessible to creditors and predatory lenders, providing an added layer of security against financial exploitation.
Medicaid Ineligibility
For individuals concerned about a special needs family member or their own Medicaid eligibility, protective trusts can help preserve assets while allowing the beneficiary to qualify for MassHealth assistance.
Scams Targeting the Elderly
Elder financial abuse is a growing concern. By placing assets in protective trusts, older adults can be protected from fraudulent schemes.
Spendthrift Beneficiaries
If you have a beneficiary who is prone to overspending due to addiction, mental health issues, or poor judgment, a protective trust can ensure that their assets are distributed responsibly over time, rather than as a large lump sum.
Divorcing Spouses
In the event of divorce, assets held in protective trusts can be shielded from equitable distribution, helping to preserve family wealth.
Types of Protective Trusts
There are several kinds of protective trusts, including:
Irrevocable Life Insurance Trust (ILIT)
ILITs are commonly used in Massachusetts to remove life insurance proceeds from your taxable estate, providing tax-free benefits to your beneficiaries upon your passing while protecting the policy from creditors and lawsuits.
Spousal Lifetime Access Trust (SLAT)
A SLAT allows you to transfer assets to a trust for the benefit of your spouse while retaining indirect access to the funds, thus permitting you to have asset protection while maintaining flexibility and control.
Qualified Personal Residence Trust (QPRT)
A QPRT allows you to transfer ownership of your primary residence or vacation home to a trust, removing it from your taxable estate while allowing you to continue residing in the property for a specified term.
Dynasty Trust
A dynasty trust allows you to transfer wealth to future generations while minimizing estate taxes and protecting assets from creditors and lawsuits for multiple generations.
At Surprenant & Beneski, our estate planning attorneys have been successfully protecting the assets of diverse clients for two decades. We will work closely with you to understand your unique financial situation and goals so that we can customize an estate plan tailored precisely to fit your needs. A significant part of your estate plan is likely to involve the creation of one or more protective trusts to safeguard your assets and secure your family’s financial future.
Services Our Dedicated Attorneys Provide
Our legal team will guide you through the trust establishment process, making certain that each document we create is well-structured, legally binding, and in complete compliance with Massachusetts state laws and regulations. We are also always available to answer questions, address concerns, and lay any fears you have to rest.
Additionally, we are happy to help you select one or more trustees. Our seasoned lawyers know which traits are essential when it comes to choosing an individual who will be effective in managing your protective trusts.
Contact Our Protective Trust Professionals Today
Our goal is to preserve your wealth and protect you and your family from perceived risks and unexpected dangers. Contact us now to feel the confidence and comfort our experienced estate planning attorneys can provide.