Do you want to protect a portion of your assets from creditors and reduce your taxable estate for estate tax purposes, but still have access to this money if you need it? A Spousal Lifetime Access Trust may be the perfect solution for you.
It is a Trust that designates your spouse as Trustee and allows your spouse to control the assets within the Trust. Your spouse and descendants are the primary beneficiary of the Trust. The Trust can be structured to be a completed gift to your descendants for estate tax purposes. Also, provisions can be added to protect assets in your trust from your descendants’ creditors, lawsuits and ex-spouses. The benefits provided by a Spousal Lifetime Access Trust include family protection against creditors and lawsuits and estate tax savings. Also, any assets in the trust grow without incurring any estate tax.
A Spousal Lifetime Access Trust can be an important part of an asset protection plan. Asset protection planning is a form of insurance. The goal is to structure assets to avoid a lawsuit altogether or settle the lawsuit for less than what is owed. There are several different asset protection trusts for beneficiaries other than spouses if you prefer, including Domestic Asset Protection Trusts, Limited Liability Companies and Lifetime Access Trusts.