Henry E. Vail II is a longtime Houston financial advisor who works with private wealth clients to deliver dedicated estate planning solutions. Henry Vail II’s approach to fee-based services helps clients access the best possible advice, which includes setting up trust accounts.
The major types of trusts are revocable and irrevocable living trusts and asset protection trusts (APT). The living trusts help avoid probate and ensure maximum wealth transfer to beneficiaries. They differ primarily in whether or not the settlor can cancel or change the terms of the agreement at any time.
By contrast, the APT is a buffer against potential lawsuits and actions by creditors and judgments against the estate. As a self-settled agreement, settlors can assign themselves the designated beneficiary, meaning they can access the assets at any time.
Properly structured, domestic APT delivers state-income tax saving benefits (when set up in states without income tax). The major risk with such trusts is that only 17 state laws in the United States permit them, which makes them vulnerable to United States bankruptcy proceedings and court orders. By contrast, foreign APTs are typically held in offshore accounts and, while more expensive, include stringent privacy measures that effectively protect assets. In addition, United States judgments against assets are not typically enforced in such jurisdictions.
The major types of trusts are revocable and irrevocable living trusts and asset protection trusts (APT). The living trusts help avoid probate and ensure maximum wealth transfer to beneficiaries. They differ primarily in whether or not the settlor can cancel or change the terms of the agreement at any time.
By contrast, the APT is a buffer against potential lawsuits and actions by creditors and judgments against the estate. As a self-settled agreement, settlors can assign themselves the designated beneficiary, meaning they can access the assets at any time.
Properly structured, domestic APT delivers state-income tax saving benefits (when set up in states without income tax). The major risk with such trusts is that only 17 state laws in the United States permit them, which makes them vulnerable to United States bankruptcy proceedings and court orders. By contrast, foreign APTs are typically held in offshore accounts and, while more expensive, include stringent privacy measures that effectively protect assets. In addition, United States judgments against assets are not typically enforced in such jurisdictions.