In this video blog, Associate Director of Education, Steve Hartnett discusses how Credit Shelter and Beneficiary Trusts include many benefits, potentially including asset protection. Learn what provides the best asset protection in such a trust.
Stephen C. Hartnett, J.D., LL.M.
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (800) 846-1555
www.aaepa.com
Director of Education, American Academy of Estate Planning Attorneys
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Steve – Enjoyed your asset protection-family trust observations. A hole in the trust concept worth considering. As to how it should be played out for the many folks who have trusts. Those who later realize they need an independent trustee when creditor problems are about to strike will be a most interesting problem to try to solve.
Thanks for your kind words.
You could draft the trust so that there is an ascertainable standard while the beneficiary is serving as trustee and a fully discretionary standard if the successor (independent) trustee is serving. Then, if there is a problem down the road, the trustee/beneficiary could resign and it would be a completely discretionary trust with an independent trustee.