Asset Protection Trust Your Way
Asset protection trust designed for inheritance protection can be as rigid or as flexible as you choose. For example, a beneficiary can be added as a co-trustee at a certain age or after the beneficiary reaches a specific goal such as graduating from college. Another option is to name a corporate trustee, such as a bank or trust company, but give the beneficiary the right to remove and replace the corporate trustee with another one.
You can also make trust distributions as limited or as broad as you choose. For example, you can state that the funds can only be used to pay medical bills or for education, or the Trustee can be given broad discretion to make distributions in the best interests of the beneficiary. You may also want to require the Trustee to take into consideration the beneficiary’s income and other assets before making distributions.
Alternatively, the Trustee can be given the authority to deplete the trust for one of the beneficiaries to the detriment of the remainder beneficiaries. If there are multiple beneficiaries, such as a trust for the benefit of your spouse and your children, the Trustee can be directed to give preferential treatment to one or more beneficiaries over the others.