July 12, 2016
An Overview of the Asset Protection Trusts in Michigan
Did you know that in Michigan you can have both asset protection and control. You don’t have to give away your assets if you want to protect them from long-term care costs or law suits. Instead, look to an irrevocable pure grantor trust (iPug Trust).
It sounds complicated, but it’s not. When you were a child I am sure you had a piggy bank, right? It’s like the piggy bank my young children have now. When I get home from work, I’ll throw my change in there, maybe a dollar. You could tip it over, but it was locked tight. Then if I wanted to, at any time, I can unscrew the bottom and empty the piggy bank and get the money out.
Well, an asset protection trust works the same way. You are able to create a piggy bank that you hold on to. You can get whatever assets out of it you want. You can manage the money inside the piggy bank, change the trustees of the piggy bank (you can be the initial trustee), and change the beneficiaries of the piggy bank at any time. The advantage of this is that the assets inside the piggy bank are protected against law suits, long-term care costs and can protect your loved ones and beneficiaries form law suits, long-term care costs and divorces.
Asset protection in Michigan is not something we think about every day, but you never know when life might throw you a curveball–bad things happen to people every day. Seeing what happens to others who did not have the proper protections in place confirms the need for asset protection and the education surrounding asset protection.
The mission of The Elder Care Firm is to help protect what you’ve earned to preserve what you value. We help Michigan families protect against long-term care costs, divorce, creditor issues, lawsuits, accidents resulting in injury and litigation, market risk, and health care crisis.
To accomplish that mission we utilize asset protection irrevocable grantor and non-grantor trusts to accomplish the goals of our clients and track the entire process from design, to execution and funding. No matter what happens with you and your health, nothing can happen to the assets in the asset protection trust if its set up correctly and early enough.
To learn more, attend one of our free, fun, LifeCare Planning Workshops to learn more.