How Families Are Protecting Assets In Carlsbad Today
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A Carlsbad family lawyer is available to help people with family law issues including asset protection. Asset protection involves financial planning in order to, in essence, protect money from lawsuits. People who have worked hard all their lives for their money do not want to lose all of their savings in a lawsuit.
The reality is that there are many starving lawyers looking for a way to make money by suing people with a lot of money. It makes little sense for a lawyer to encourage his client to sue someone who has no funds to pay a legal judgment. Therefore, for those who have money, it is wise for them to contact their lawyer and create a barrier around their assets.
One way to protect assets is by creating a wealth preservation trust. This is a form of irrevocable trust which is different from a living trust which is commonly used in estate planning. A living trust is a revocable trust. This means that the grantor or trustor, the person who creates a trust for the benefit of another, the beneficiary, has control and ownership of trust assets.
The ordinary or revocable trust is owned by the grantor who can, at his or her discretion, change trust assets, change or add beneficiaries, or do away with the trust altogether. But this not the case for a wealth preservation trust which cannot be altered or canceled by the grantor.
The assets pass to the beneficiary upon the death of the grantor. During the lifetime of the grantor, he or she controls the assets of the trust. The trustor has no ownership of the assets within an irrevocable trust however.
The purpose of this type of irrevocable trust is to protect the trust assets from lawsuit. The trustor no longer owns trust funds so he cannot lose them. This is only one of many plans a Carlsbad family lawyer can help establish safeguard a person's assets.
Article Source: Articlelogy.com
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