Areas of Practice
Locations
15530 E Broncos Pkwy, Ste 300
Centennial, CO 80112
(303) 520-6941
Asset Protection
Many families and business owners are concerned about protecting their assets from creditors. Little Law Offices has experience designing asset protection strategies for individuals, families, physicians and business owners. A revocable trust provides no asset protection for the trust maker during his or her life. Upon the death of the trust maker, however, or upon the death of the first spouse to die if it is a joint trust, the trust becomes irrevocable as to the deceased trust maker’s property and can provide asset protection for the beneficiaries, with two important caveats. First, the assets must remain in the trust to provide ongoing asset protection. In other words, once the trustee distributes the assets to a beneficiary, those assets are no longer protected and can be attached by that beneficiary’s creditors. If the beneficiary is married, the distributed assets may also be subject to the spouse’s creditor(s), or they may be available to the former spouse upon divorce.
Trusts for the lifetime of the beneficiaries provide prolonged asset protection for the trust assets. Lifetime trusts also permit your financial advisor to continue to invest the trust assets as you instruct, which can help ensure that trust returns are sufficient to meet your planning objectives. The second caveat follows logically from the first: the more rights the beneficiary has with respect to compelling trust distributions, the less asset protection the trust provides. Generally, a creditor ‘steps into the shoes’ of the debtor and can exercise any rights of the debtor. Thus, if a beneficiary has the right to compel a distribution from a trust, so too can a creditor compel a distribution from that trust.
Contact asset protection attorney Carla Little today in order to discuss asset protection options available to you and your family today.
Little Law Offices assists clients with asset protection, business planning, business succession, charitable giving, elder law, estate planning, financial power of attorney, guardianship, inheritance tax strategy, legacy planning, life transitions, long term care, Medicaid, medical directives, Medicare, pensions, philanthropy, probate, retirement plans, Social Security, special needs planning, trusts, wealth management, what to do when someone dies, wills in Aurora, Bennett, Bow Mar, Castle Pines, Castle Rock, Centennial, Cherry Hills Village, Columbine Valley, Denver, Elizabeth, Englewood, Foxfield, Glendale, Greenwood Village, Highlands Ranch, Littleton, Lone Tree, Parker, Perry Park, Ponderosa Park, Sheridan, in Arapahoe County, Douglas County, and Elbert County, Colorado.
Asset Protection
Many families and business owners are concerned about protecting their assets from creditors. Little Law Offices has experience designing asset protection strategies for individuals, families, physicians and business owners. A revocable trust provides no asset protection for the trust maker during his or her life. Upon the death of the trust maker, however, or upon the death of the first spouse to die if it is a joint trust, the trust becomes irrevocable as to the deceased trust maker’s property and can provide asset protection for the beneficiaries, with two important caveats. First, the assets must remain in the trust to provide ongoing asset protection. In other words, once the trustee distributes the assets to a beneficiary, those assets are no longer protected and can be attached by that beneficiary’s creditors. If the beneficiary is married, the distributed assets may also be subject to the spouse’s creditor(s), or they may be available to the former spouse upon divorce.
Trusts for the lifetime of the beneficiaries provide prolonged asset protection for the trust assets. Lifetime trusts also permit your financial advisor to continue to invest the trust assets as you instruct, which can help ensure that trust returns are sufficient to meet your planning objectives. The second caveat follows logically from the first: the more rights the beneficiary has with respect to compelling trust distributions, the less asset protection the trust provides. Generally, a creditor ‘steps into the shoes’ of the debtor and can exercise any rights of the debtor. Thus, if a beneficiary has the right to compel a distribution from a trust, so too can a creditor compel a distribution from that trust.
Contact asset protection attorney Carla Little today in order to discuss asset protection options available to you and your family today.
Little Law Offices assists clients with asset protection, business planning, business succession, charitable giving, elder law, estate planning, financial power of attorney, guardianship, inheritance tax strategy, legacy planning, life transitions, long term care, Medicaid, medical directives, Medicare, pensions, philanthropy, probate, retirement plans, Social Security, special needs planning, trusts, wealth management, what to do when someone dies, wills in Aurora, Bennett, Bow Mar, Castle Pines, Castle Rock, Centennial, Cherry Hills Village, Columbine Valley, Denver, Elizabeth, Englewood, Foxfield, Glendale, Greenwood Village, Highlands Ranch, Littleton, Lone Tree, Parker, Perry Park, Ponderosa Park, Sheridan, in Arapahoe County, Douglas County, and Elbert County, Colorado.
Areas of Practice
Locations
15530 E Broncos Pkwy, Ste 300
Centennial, CO 80112
(303) 520-6941