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Thomas McJD
Thomas McJD, Attorney
Category: Estate Law
Satisfied Customers: 3170
Experience:  Wills, Trusts, Probate & other Estate Matters
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Question: I Have these two people that have been used and

Customer Question

Question: I Have these two people that have been used and treated badly and truth be told they have helped so many people and people just kept taking advantage and now they want to go off the grid and make it hard for anyone to find them. One of the two
people are sick and they just want to retire and take it easy. They will be fine financially and they just sold there home which they owe no money on. Is there a type of trust that they can put a new home in to where they could be hidden in a corporate umbrella
to some degree. You know, to where someone just cant run a simple search and find them.
Submitted: 1 year ago.
Category: Estate Law
Expert:  Brent Blanchard replied 1 year ago.
Thank you for your question.Almost every state (probably all, really) allows a person to set up a trust for their own benefit, with the use of a standard "spendthrift" clause to protect the trust assets from future creditors. FUTURE.However, the protection when the trust is revocable, and the person creating the trust is also the trustee, turns out to be minimal. They are best for avoiding probate when the person dies (private, no court, faster, much lower attorney's fees and so forth). Future creditors can usually get their hands on assets of those trusts for debts or liabilities owed by the creator of the trust--BUT the spendthrift protections do hold fairly strong for other beneficiaries (like children or others who did not put assets into the trust) even if they have a current right to income or principal distributions from the trust. The key is that they didn't set the trust up themselves for their own benefit.I am in the process of writing a short article on the rankings of the states for effectiveness and strength of their laws allowing asset protection trusts--Nevada is #1, Utah is #2, North Dakota is #3. They are called "Domestic Asset Protection Trusts" with the annoying acronym of "DAPT". The easiest way to make these trusts effective for a person living in any other state is to have some asset like a little bank account located IN that state, AND have the trustee or a co-trustee who is a resident of that state (the resident trustee is not required for all of them, but the courts of any *other* state where the person lives are believed to be less likely to have a problem with the asset protections if there is a trustee "over there" over whom they don't have jurisdiction).All this means that these days, spending huge amounts of money and taking some risk by setting up an "offshore" trust somewhere like the Cayman Islands is no longer necessary.A talk with a local attorney who is FAMILIAR with asset protection will fill in the rest of the details. Bot***** *****ne answer is almost always "YES". Thank you.

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