There are many things in life you may want to protect. Tennessee Domestic Asset Protection Trusts are an excellent way for individuals to protect their assets from a lawsuit, bankruptcy, divorce or other similar financially damaging situations, while continuing to benefit personally from these assets. Regardless of occupation or net-worth, everyone is exposed to liability, so any individual or family can benefit from a Domestic Asset Protection Trust.
Under this Law:
- Assets (including homes) are insulated from creditors, yet individuals may take out income or principal and direct the investments of the trust.
- Such a trust can exist for up to 360 years, therefore protecting family wealth for many generations.
- Tennessee residents can keep their assets in state, while residents of other states may create an asset protection trust in Tennessee with a Tennessee trust company.
The Basic Requirements for Creating an Asset Protection Trust is that the Trust:
- Must be governed by Tennessee law
- Must be irrevocable
- Must have a spendthrift clause
- Must have a qualified trustee
- Must be an executed affidavit
The Qualified Trustee:
- Must be a Tennessee resident or a corporate trustee licensed under Tennessee law.
- Must have at least some certain duties such as custody of assets, preparing tax returns or be materially administering the trust.
Ensure trusts are set up properly and that all necessary requirements are satisfied by using the guidance of a qualified attorney.
Contact the Law Office of Justin M. Gilbert, we can assist you in determining whether a Tennessee Domestic Asset Protection Trust is right for you.