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Revocable Living Trust
A revocable living trust is a legal document which functions similar to a will. Clients indicate how
their assets will be distributed when they become deceased. However unlike a will a living trust avoids
probate at death. It also prevents the court from controlling your assets if your become incapacitated.
Revocable trusts allow clients to control the assets they leave their beneficiaries. They can acquire,
dispose, etc. The revocable trust can be terminated at any time.
A revocable living trust does not, in and of itself, provide asset protection. However, it does avoid
probate, allow you to keep control and there are a few tricks that will enable your trust to provide some
appearances of asset protection.
Normally, an asset protection trust with a United States citizen or US resident as the settlor is tax
neutral. There should be no additional income, estate, gift or excise tax because of the settlement of
an asset protection trust nor should this type of trust be expected to save taxes.
Clients should also know that foreign trusts cannot be legally be used to hide income from the Internal
Revenue Service.
If you are considering an asset protection trust always have it done by a credible tax expert with
experience. You are getting wrong advise from someone who is selling you on the idea that an asset
protection trust or any foreign trust will save you income taxes.
Please feel free to contact us for more information about our
Asset Protection Services. Email Us
or give us a call at (800) 982 0462. We look forward to hearing from you.
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