Personal Assets Trusts

At the Kushner Legal Corporation, we are proud to offer our clients a unique planning service called a Personal Asset Trust. A Personal Asset Trust (or “PAT”) is designed to replace an outright distribution to beneficiaries and can be incorporated into most revocable living trusts to ensure that beneficiaries are able to receive their inheritance without un-necessary risk or exposure. The Personal Asset Trust allows a beneficiary to maintain control over their assets without the burden of ownership. Here are some examples of times where a Personal Asset Trust may be most beneficial:

Concerns about divorce

If you are concerned about the marital status of one of your beneficiaries or concerned that their spouse may try to take half or more of their inheritance, a personal asset trust can add an extra level of protection.

Concerns about financial responsibility

Leaving a substantial sum of money to a beneficiary who may not be the most financially responsible can cause an unnecessary level of stress for any person. A Personal Asset Trust can put guard-rails in place to allow a beneficiary to have access to funds without the risk of having it drawn down too quickly or in an irresponsible manner.

Concerns about creditors

Creditors can be relentless in trying to collect on a debt and an outright distribution to a beneficiary can leave a beneficiary vulnerable to creditor collections. A Personal Asset Trust can act as a shield against potential creditors.

Concerns about drug and alcohol abuse

Addiction is a serious medical condition and can affect people from every walk of life. When someone has an addiction, access to large amounts of money can cause potentially devastating consequences. A Personal Asset Trust ensures that beneficiaries with addictions will still be able to receive funds but will ensure that the funds can be distributed in a responsible manner.

Concerns about liability

Some beneficiaries may be employed in areas of work that have high liability such as doctors, dentists, lawyers or real estate professionals. A Personal Asset Trust can provide an extra level of protection from future law suits.

Contact Kushner Legal Corporation today to schedule a consultation to discuss setting up a Personal Asset Trust for your beneficiaries.

The purpose of a Personal Asset Trust (“PAT”) is protection of the beneficiary’s inheritance. The idea here is that the PAT replaces an outright distribution to beneficiaries. In Estate Planning Offers - Tools Of Asset Protection most trusts, at some point, the beneficiaries have the assets distributed directly to them. It’s in their names and the trust ends. And that sounds good because you might have thought, at their age, they are capable of managing their inheritance on their own. The only problem is that once the beneficiary owns assets in their own name, they are exposed. They are exposed to a number of different risks. Call 818-463-0805 to schedule your initial consultation and have estate planning attorney Richard M. Seff answer your most pressing questions at no cost to you.

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Divorce

A lot of people may think that’s not a major issue, but if you look at the divorce rate in California, it’s over 50%. Divorce is a real issue and when someone receives an inheritance, it’s not protected from a divorcing spouse.