Asset Protection Trusts Attorney in Knoxville, Tennessee

Life, as we all know, is unpredictable. These unexpected twists and turns can sometimes put your assets at risk. That's why it is important to prepare for the unknown. An Asset Protection Trust serves as an effective tool to do just that. An Asset Protection Trust is a legal structure that allows you to transfer your assets into an irrevocable trust, protecting your wealth from potential creditors, lawsuits, and other financial risks. It's similar to having a safety deposit box under your control, protecting your hard-earned assets from any unforeseen threats. And in Tennessee, we have an exceptionally useful trust called the Tennessee Investment Services Trust (TIST) we can utilize to protect your assets.

As your dedicated estate planning attorney operating in Knoxville, Tennessee — and the surrounding areas of Maryville, Farragut, Clinton, and throughout Knox County, Blount County, and Anderson County — I understand that understanding asset protection can seem daunting. There is legal jargon, paperwork, and implications. It's important that you know I am here to guide you through this process. I aim to simplify everything for you and assist you in making decisions that are best suited for you and your family. 

If you're ready to take the first step toward securing your financial future with an Asset Protection Trust, contact my office — Mark E. Tillery, Attorney at Law — today to set up a free phone consultation. Together, we can create a plan that's tailored specifically to your needs and circumstances. 

Understanding Asset Protection Trusts (APT) 

An APT is not merely a legal document. It's a shield for your assets, creating a barrier between your wealth and any potential threats. Imagine having a fortress around your assets, protecting them while you maintain control and enjoy the benefits during your lifetime. That's the power of an APT. 

Who Should Use an Asset Protection Trust (APT)? 

An Asset Protection Trust (APT) is not exclusive to the ultra-wealthy. In fact, anyone with assets that they wish to protect can benefit from setting up an APT. Professionals such as doctors, lawyers, and business owners, who may be susceptible to lawsuits, often find APTs particularly advantageous. Furthermore, individuals with large estates, those facing substantial financial debt, or those in high-risk industries may also consider utilizing an APT to protect their assets. Remember, an APT acts as a safeguard against potential future creditors, not existing ones; hence, it's always better to act sooner rather than later. 

Exploring the Benefits of an Asset Protection Trust

The benefits of an APT are manifold. In addition to providing security, it also enables effective estate planning, ensuring your wealth is distributed according to your wishes. An APT can also help reduce estate taxes and protect your assets from being depleted by long-term care costs. 

The Process of Setting Up an Asset Protection Trust (APT)

Setting up an Asset Protection Trust (APT) is a process that demands a clear understanding of your financial goals and objectives. As your dedicated estate planning attorney, I will work with you to determine if an APT is the right choice for you. If it is, we will then carefully craft a trust agreement that meets all of your requirements and provides the necessary level of protection for your assets. Here is the process of setting it up: 

1. Identify Assets for Protection: The first step involves identifying the assets that you wish to protect. This could include real estate properties, business interests, cash, and other valuable assets. 

2. Find a Competent Attorney: Next, you will need to find a reputable attorney who specializes in estate planning and asset protection. The attorney will guide you through the legal procedures involved in setting up an APT. 

3. Create the Trust: Your attorney will then help you draft the trust document, specifying the terms of the trust, the trustee, and the beneficiaries. It's important to ensure that this document is drafted correctly to prevent any potential legal issues. 

4. Transfer Assets: After the creation of the trust, the next step is to transfer your identified assets into the trust. This process might require additional legal paperwork depending on the type of assets being transferred. 

5. Maintain the Trust: Once the trust is established, it will require ongoing maintenance and management. This can often be handled by the trustee, who is responsible for managing the trust assets according to the terms of the trust. Remember, an APT is a long-term commitment and should be regularly reviewed and updated as necessary. 

6. Enjoy the Protection: With the APT in place, your assets are now shielded from potential future creditors and lawsuits, ensuring your wealth is protected for both you and your beneficiaries. 

From the identification of assets to the maintenance of the trust, each step is crucial in fortifying your financial fortress. Remember, regular review and updating are essential to ensure the trust continues to serve your goals effectively.  

Frequently Asked Questions About Asset Protection Trusts

Can I Establish an APT in any State?

No, not all states permit the formation of APTs. However, several states in the U.S. have favorable laws towards these trusts — including Tennessee. It's crucial to consult with an experienced attorney familiar with the specific asset protection laws in your state. 

What is a 'self-settled' APT?

A self-settled APT is a trust where the settlor (the person creating the trust) is also a discretionary beneficiary. This means that the settlor can also benefit from the trust assets while they are protected from creditors. 

What Kind of Assets Can I Put in an APT?

You can place various types of assets into an APT, including but not limited to, real estate, stocks, bonds, cash, and interests in businesses. However, it's important to remember that transferring assets into an APT should be done with the intention of long-term planning, not to defraud existing creditors. 

Can an APT Protect My Assets from a Divorce?

This can depend on a variety of factors like the timing of the APT creation and the laws of the state. It's essential to consult with an attorney to understand how an APT could impact asset division in a divorce. 

Can I Change or Dissolve an APT Once It’s Established?

Usually, APTs are irrevocable, meaning they cannot be altered or dissolved without the consent of the beneficiaries. However, certain conditions allow for changes. Always discuss this with an estate planning attorney before establishing an APT.