Last Will and Testament


Central Coast Law July 1, 2019

Graph Showing that 35% of Those Having Over $1 Million in Assets Have Some Form of Asset Protection PlanAsset Protection is a kind of strategy that is made to protect the assets of the beneficiary from the creditors’ claims. These are used by business companies and individuals to limit the creditor’s’ access on their assets.

It is a legalized strategy that should be initiated long before you actually need it. Some common methods which you could use are family partnerships, asset protection trusts, etc.


Asset Protection Trust

is a perfect solution for holding your assets like life insurance, cash investments, properties etc. by a trustee. It is also great way of passing on your wealth to your heirs without going through the probate process.

Nearly 35% of people with over $1 million have invested in asset protection trust, according to a recent study and it has proved extremely beneficial to them.

There are different types of legal trusts you could also opt for:

Irrevocable Trusts:

An Irrevocable Trust is when the grantor gives up all the control of his assets after transferring it to the trust. Such a trust can’t be modified or terminated later without the beneficiary’s permission and hence, no clubbing is allowed.

Irrevocable Trusts can have many benefits, some of them being:

  • Exemption from estate tax by removing all the taxable assets from the estate.

  • Prevention of assets from all the creditors. The assets remain the part of the trust even after the beneficiary’s death. Hence, they are always saved from the creditors and collectors.

  • Prevention of assets from being misused by beneficiaries. They can be distributed with conditions to prevent their misuse.

  • Remove the assets from the estates while retaining the benefits.

  • To give assets to children under modified tax rules.

The following hierarchy chart clearly depicts the irrevocable trust in contrast with the revocable trust.

Diagram Showing a Hierarchy of Transfer of AssetsRevocable Trust:

In a Revocable Trust, the income earned through the assets is handed over to the grantor and only after his death, is passed on to the beneficiaries.

This kind of trust is a flexible one and can be altered depending on the grantor’s demands. It can also list one or more beneficiaries and hence, the process of probate is avoided. The trust remains private till the death of the grantor.

Bare Trust:

A Bare Trust is the one in which the beneficiary has complete right to the assets within the trust as well as to the income generated if any, from these assets even after giving up the legal title to all his assets.

They are mainly used to transfer the one’s property to their heirs. The beneficiaries once set up while drafting the legal document for the bare trust cannot be changed later on.

The trustee in this case has to manage all the property in an efficient manner so as to generate the maximum benefit beneficiary. However, the trustee himself has no say or control over the assets.

Living Trust:

A Living Trust allows easy transfer of assets and is created during the person’s life. The assets do not need to go through the process of probate which can otherwise be costly and time consuming. This helps the grantors during bankruptcy, divorces, lawsuits, and from creditors as depicted in the image below.

Diagram Showing Protective Inheritance Trusts

The trustee holds the possession of all the assets of the grantor or for the beneficiary. It is also known as Inter-Vivos (living) Trust. In case the trust is established through a testament of the last will of the person, they are known as the Testament Trust.

So, what does an Asset Protection Attorney do?


Santa Barbara Asset Protection Attorney

will stand up for you and put in his best legal practice to formulate plans and trusts to meet your needs. The value of hiring an

Asset Protection Attorney

is that you will have someone who will understand you and your situation and protect your hard earned assets.

By taking the right action at an early stage, you will be able to protect your assets and make certain that they are safely passed on to your children.

Schedule a consultation with our experienced Asset Protection Attorneys

At Central Coast Law, we help our clients in developing asset protection strategies, so that no assets need to be hidden.

Schedule a planning session with our experienced attorneys today to learn how we can help you and your family: 805-881-3281.