You have two basic kinds of trusts to choose from when narrowing the options down. While there are several different kinds of trusts that you can discuss with your Newport Beach asset protection attorney, they all fall into two categories: Irrevocable trusts and revocable trusts.

• An Irrevocable Trust is one that one that cannot be altered – this means you’ll want to make sure you are absolutely certain that all the parameters of the trust are something that you will be able to agree to for the long haul. In addition, an irrevocable trust can never be terminated, no matter what the surrounding circumstances are. Again, a good reason for careful consultation with your Newport Beach trust attorney before signing any dotted lines.

• A Revocable Trust can be altered as much as the grantor wants, though he or she will have to do so through the trustee. Nonetheless, the option to make changes is there, and this means that you can change your mind about the parameters anytime. In addition, unlike an irrevocable trust, a revocable trust can be terminated by the grantor at any time. This means if you have a change of heart or your life circumstances change, you can change or end the life of the trust.

While the revocable trust may sound better than the irrevocable trust, both have their pros and cons, and you won’t know which meets your needs best without first consulting a California asset protection lawyer. Contact Jeffrey Matsen today to find out what your options are for trusts.

Trusts are a great way to shelter assets and keep property out of harm’s way if you are sued or another type of judgment is placed against you. To decide which kind of trust is for you – and there are many kinds – you’ll want to start by deciding two main things:

Do I want a living trust or testamentary trust?

• A living trust gives you the option to access what the trust holds while you are living and makes it possible for you to make changes at any time to what is in the trust and how it is managed by communicating with the trustee of the trust. As the grantor of a living trust, you can generally make as many changes as you want, thought it is recommended that you consult your California asset protection attorney before making any changes to your trust.

• A testamentary trust is one that is built into your will. This type of trust can also be changed by you, the grantor, during your lifetime, but the assets held within are generally considered to be what you would leave behind for loved ones or institutions that you wish to give a charitable contribution to once you have passed away.

Before making any decisions about which trust suits your needs best, you should make a list of questions to ask your California estate planning lawyer. He or she will answer your questions, and through this process help you determine whether a living trust or a testamentary trust is the right choice.

Your Newport Beach asset protection lawyer may also want to discuss an offshore trust with you, especially if you have more than $2 million in liquid assets, or if you are a medical professional vulnerable to malpractice lawsuits.

When you decide to open an offshore trust, there are a few simple considerations that will help you steer clear of problems later down the road.

Choosing a trustee: When you are considering who should be the trustee of your offshore trust, there are a few options.

1. You can choose a friend or family member: If the person you choose is a friend or family, the reasons may be because the individual you entrust has a vested interest in the assets held within the trust. This can be a safer way to go because they want to ensure the safety of the assets due to business dealings or because they want to protect you. In either case, have your California offshore trust attorney help you decide — appearance can be deceiving, and while you trust this person now, money can change relationships.

2. You can choose an offshore bank as your trustee: This is often a good way to go depending on the trust, especially in Cook Islands Trust where banks are extreme defensive players when it comes to the rights of the grantor of the trust.

3. You can choose a professional trustee who lives where the trust is held: This person will charge you a fee, but the beauty here is that they are an objective party who has no interest in what family members, a divorcing spouse, or a U.S. attorney may want to do with or to your trust.

To help you decide which type of trustee is best for you, get in touch with Orange County asset protection attorney Jeffrey Matsen today by visiting our Contact page.

Creating an offshore trust make some major changes in how the assets therein are protected and managed.

• The Assets you place in an offshore trust will not be in your name anymore — they will be in the name of the trust and controlled and managed not by the grantor (you) but by the trustee. The trustee can be an individual or a banking institution based upon your personal needs.
• In most cases, the trustee will not have the power to make decisions about the assets held within the trust without your go ahead, but you should always advise your California asset protection lawyer of any changes you wish to make before moving forward — it could be that he counsels you not to make the move.
• An offshore trust will take the assets from being communal property between you and your spouse since the trust in which they are held will be the entity named as the owner of the assets. This means that as the grantor of the trust, the assets (while not technically in your name) are no longer accessible to the spouse you are divorcing.
• BEWARE that you can’t decide after divorce has been decided upon to stash a what you feel is rightfully yours in an offshore trust. You must have created the trust while the marriage is still legally binding and before anyone is served with divorce papers.

If you have an interest in an offshore trust you will want to discuss it with a California offshore trust attorney who can advise you as to which kind of trust suits your needs best. Always consider the needs of your loved ones and yourself when you decide on a trust; it can be a phenomenal way to protect what is rightfully yours in the event of malpractice, predatory creditors, and much more.

While there are many options in trusts that will help to protect your money, your money may already have a good degree of protection, depending on where it is and the manner in which it is kept. Before making any decisions about where you want your liquid assets to go, discuss your options with your Orange County asset protection lawyers.

In many cases, a great percentage of a person’s liquid assets may be held in a 401(k), Roth IRA, IRA, or other type of deferred compensation or retirement plan. Many of these plans will keep your assets safe in the event of a lawsuit, but again, the only way to be 100 percent sure of this is to discuss the parameters of the plan with your Orange County asset protection attorney.

While deferred compensation and retirement plans may keep your money safe in certain situations, laws change, and you must have a firewall to protect what is rightfully yours. That’s why you must have proper liability and/or malpractice insurance, depending on your profession. Protecting your liquid and hard assets with liability insurance is a way to create some peace of mind. Keeping your money in retirement funds will create more peace of mind. But if you’re the kind of person who wants to make sure that all your bases are covered, talk to your Orange County estate planning lawyer about the options you have for creating trusts for your retirement plan(s), your home, and the various soft and hard assets you use to run your business. Separating assets by way of trusts or by including them in different LLCs, you can avoid a lawsuit against your whole estate or whole worth.

Discuss the options you have for protecting your money: Whether it’s retirement plans or liability insurance, trusts, or a combination of all three, you can rest easy knowing that a highly experienced lawyer has reviewed your assets and can tailor a plan to meet your specific estate planning needs.