Over the last ten years I have the privilege to speak to virtually every major national legal estate planning and elder law organizations. As I speak at each one I come to the conclusion that there is massive confusion among attorneys as to what asset protection planning is.
The biggest challenge for most lawyers is when they think of asset protection planning, they think of domestic asset protection trusts (DAPT). While that was popular, I find this really not relevant to the typical estate planner. Why? Because most every day clients don't want to have their trusts held in some other state, let alone some other country. Asset protection planning today is really very different.
Asset protection planning today must encompass three core elements:
1. Protection from losses and other general predators;
2. Protections from nursing homes so that the clients can become eligible for government-based benefits if the need should arise; and
3. Protection of family values.
The key strategy to employ this is by utilizing trusts such as the Irrevocable Peer Grantor Trust. Why this is critical is that it allows the client to be in control of the trust and to change all elements of it except that which they want to protect. While many practitioners are "concerned" around this approach – as a practitioner that has utilized this thousands of times over the last 20 years – I profess that anyone who doesn't do it, just doesn't understand it.
If you have any questions as to how you can create asset protection for a client where they can still be the trustee and retain the power of appointment, I encourage you to read Irrevocable Peer Grantor Trusts, the Estate Planning Landscape has Changed published in Syracuse Law Review. Or, we're happy to provide you with a copy. Just email Roslyn Drotar at rdrotar@lawyerswithpurpose.com. This article will provide the legal analysis based on case law all the way up to the Supreme Court that supports these positions. Okay don't let fear stop you from serving the clients that need this great tool. Thousands of attorneys across the country are using it every day. When will you?
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