One of the concerns we hear from our clients: how can we protect our family’s wealth from the risk of future lawsuits and creditors? This question is often posed by clients in high-risk professions, such as doctors, lawyers and business owners, but it should also be a concern for anyone that wants to protect their hard-earned assets in the event of a divorce.
Though we would like to believe that our children will always make good choices and will be fortunate enough to have a strong, lasting marriage, the reality does not always match. Sometimes, we find that during a divorce, a disgruntled spouse may claim an interest in any assets available to the other spouse. This is where the domestic asset protection trust comes in.
A domestic asset protection trust protects assets from future lawsuits and creditors. To maximize its effectiveness, the trust must be set up and funded well before any legal actions occur. The recent decision of the Supreme Court of the State of Nevada, Klabacka v. Nelson, shows just how powerful a domestic asset protection trust can be. We call it “bulletproof,” as it is incredibly difficult to break through the protections of the trust.
If a recent marriage has you concerned about protecting your family’s legacy or if you are in a high-risk profession – or you are a financial advisor of a family who has these concerns – reach out to us so that we can discuss how to create a trust that will protect your family’s – or client’s – wealth for future generations.