The benefits of a Domestic Trust
Wyoming’s Domestic Asset Protection Trust is also sometimes referred to as a qualified spendthrift trust or a self-settled spendthrift trust. It may hold stock, cash, property or any other type of asset(s). The trust is irrevocable, meaning assets may not be taken back by the trusts creator. Though, the creator may distribute 5% per year, plus any interest the trust has paid, on the assets. (Check with your tax advisor to determine taxes when you do this.) The trust's maximum life is 1,000 years. Another wealth management strategy is a Solo 401(k) LLC.
Forming a trust is the best asset protection inside the US. The purpose of creating a trust to protect assets are:
- Privacy The entity is not filed with the state, but rather is an internal agreement formulated by an attorney, so there is no public record of the entity or the assets it holds. It does require an employer identification number, but the IRS never knows what goes inside.The members and managers associated with the Trust are never listed on the public record with the Wyoming secretary of state.
- Iron clad asset protection. The entity is separate from the creator and overseen by an independent Trustee. The trust's assets cannot therefore be seized to satisfy judgements against the creator of the trust. Nobody gets between you and your money.
- The Trustee may be a Private Trust Company. The Trustee may be either aresident of Wyoming or a Private Trust Company (this includes Wyoming LLCs), which have been approved by Wyoming's banking commission. The LLC must have a physical presence inside Wyoming. The LLC’s purpose is solely being Trustee for the trust in question. The LLC may be paid for services rendered.
- Control. The Trustee may consult with an Investment Advisor (which may also be an LLC). The creator can be both a manager and member of the LLC. The Trust is allowed to pay for investment advice. This provides total control to the creator with regards to what the trust may do. This is because the Trustee must do as the Advisor says, by law.
- Flexibility. The beneficiary may be an LLC. The trust's creator may manage the LLC, but may not be a member. Changing members is allowed and easy, thus giving the creator flexibility and control over who gets the trust's assets, if for instance there were something which changed regarding the original members of the Beneficiary LLC.
Forming a trust corporation costs $4995. This is for a Trust written to your exact specifications. You will also receive two hours of consultation, a Trust Company, an LLC Beneficiary, an Investment Advisor LLC, and our complete virtual office package. Give us a call to see whether any of our strategies are a good fit for you.