Anyone can be the victim of a lawsuit, and certain business dealings can result in creditors seeking to attach your personal resources. People who are in particular fields such as physicians and those who invest in real estate are especially vulnerable.
Given the above, asset protection is something to take seriously if you are in possession of a significant store of financial resources.
If you have access to assets that you put into a trust they are usually going to be unprotected because you have incidents of ownership. However, self-settled irrevocable Alaska trusts are a notable exception.
Due to the favorable laws in the state of Alaska the grantor of a self-settled trust can be the beneficiary and he or she can receive distributions from the trust. However, the assets are indeed protected from creditors and claimants and they are not considered to be a part of your estate for estate tax purposes.
The trustee must be a resident of Alaska or have a primary business presence in the state. The simple way to go about it given this stipulation is to utilize an Alaska-based trust company to act as trustee.
If you are interested in the possibility of creating an Alaska trust to preserve your assets and reduce your estate tax exposure the first step is to sit down and discuss the details with a seasoned and savvy Somerset County NJ estate planning lawyer. Your attorney will take stock of your situation, listen as you explain your objectives, and provide you with the appropriate professional advice.