Hold on to your Nest Egg
People of all walks of life are increasingly concerned about being sued. Professionals and business owners everywhere are concerned about being placed in a situation where they could lose a large portion of their net worth. Historically, the only way to protect your assets from creditor attack was to effectively give them away. With the new DAPT, you can retain the right to access the assets while still keeping them safely tucked away.
DAPTs are a cutting-edge strategy, and Premier Bank & Trust has been at the forefront of changing Ohio's law.
What is a DAPT?
Doctors, business owners, lawyers, accountants, directors of publicly traded companies and anyone who has a risk of a lawsuit will benefit from a DAPT. You don’t have to be an Ohio resident to create an Ohio trust, however the assets need to be held in Ohio by the trustee. In fact, people who live in states with high rates of litigation are moving assets into Ohio DAPTs to ensure their protection.
How DAPT Works
A qualified attorney prepares the trust documentation. A DAPT is different than other kinds of trusts out there, so it is essential that you work with someone who has experience in the field. If the document isn’t prepared correctly you may be left without any asset protection.
Identify a Trustee to administer the Trust. Unlike some revocable trusts where you can be your own trustee, a DAPT is only effective if a third party serves as fiduciary. The Trustee’s main job will be to take the steps necessary to protect your assets if a creditor tries to attach them, so you will want a fiduciary that is knowledgeable and an aggressive defender. Many advisors suggest that a corporate fiduciary, like Premier Bank & Trust, is the best and safest choice. The Trustee must be based in Ohio.
Identify the assets that can be placed into the Trust. Choose which assets will best be placed in the trust. You don't want to pick items that are already protected from creditors, such as retirement plans. And, you probably don't want to pick assets that create revenue that you will need to pay day-to-day bills. Instead, think about longer-term investments that you may not need to access on a regular basis.
The Trust is funded. After the assets are identified, your trusted advisors can help you complete the transfer and do some due diligence that will provide greater protection. Once the funding is finalized you can rest assured that your Nest Egg is protected.
For questions or to make an appointment regarding DAPT, contact Dan Griffith today!
Investment products are not a deposit product. Not FDIC insured. No bank guarantee. Not insured by any federal government agency. May lose value.