For individuals and families who have spent years building wealth, preserving that legacy is just as important as growing it. In today's world, where lawsuits, creditors, long-term care costs, and unforeseen financial challenges are real risks, asset protection trusts are powerful legal tools that can help safeguard your hard-earned assets.

At my office, we frequently incorporate these types of trusts into the back end of our clients' estate plans to protect their future beneficiaries. We commonly refer to these structures as Lifetime Asset Protection Trusts (LAPT)—designed not just to protect what you've built, but also to ensure that your beneficiaries receive it securely and responsibly.

What Is an Asset Protection Trust?

An Asset Protection Trust (APT) is a type of trust that creates a legal barrier between your assets and potential future threats, such as creditors, lawsuits, or long-term care expenses. Most APTs are irrevocable, which means the person creating the trust (the “grantor”) gives up some control over the assets in exchange for greater protection.

A Lifetime Asset Protection Trust (LAPT) is a specific type of asset protection trust that is often used to hold inherited assets for your children or other beneficiaries in a way that protects those assets from:

• Divorce
• Bankruptcy
• Poor financial decisions
• Lawsuits or creditor claims

Why Asset Protection Matters

Families with significant or complex assets are particularly vulnerable to:

• Professional liability claims
• Divorce or family disputes
• Nursing home and long-term care costs
• Business-related lawsuits or financial setbacks
• Estate taxes and probate complications

By incorporating Asset Protection Trusts or LAPTs into your planning during life or after your passing, you can minimize these risks and ensure long-term stability for your family and legacy.

Incorporating Asset Protection into Wills and Trusts

There are several ways to embed asset protection into your broader estate plan:

1. Testamentary Lifetime Asset Protection Trusts (LAPT)

Your Last Will and Testament can direct that your estate be distributed into LAPTs for your beneficiaries. This strategy allows you to:

• Keep assets protected in a trust during your beneficiary's lifetime
• Ensure the inheritance isn't lost to divorce or creditors
• Give your children or loved ones the benefit of the assets without direct exposure

2. Standalone Irrevocable Asset Protection Trusts

These trusts are created during your lifetime and can move specific assets out of your personal estate. In Pennsylvania, these include Spousal Lifetime Access Trusts, which can protect your assets while allowing your spouse to have access to these assets, and Medicaid Asset Protection Trusts, which protect assets from being spent down to qualify for long-term care. These types of APTs can:

• Shield your home or other investments
• Help you plan for nursing home care
• Reduce estate tax exposure

3. Revocable Living Trusts with Embedded LAPTs

While a revocable living trust won't protect your assets during your lifetime, it can be structured to pass assets into Lifetime Asset Protection Trusts for your children or other beneficiaries. This is a powerful tool for those who want to maintain flexibility during life but ensure lasting protection for heirs after death.

Designing a Custom Asset Protection Strategy

Asset protection is not one-size-fits-all. Your plan should be based on your specific family dynamics, financial picture, and goals.

We help clients:

• Determine whether a revocable or irrevocable trust structure is appropriate
• Design protective trusts for children and grandchildren
• Incorporate asset protection into wills, living trusts, and overall estate strategy
• Maintain flexibility while still achieving long-term protection

Protect What You've Built — Now and for the Future

You've worked hard to build wealth, and you deserve a plan that protects it. Asset Protection Trusts and Lifetime Asset Protection Trusts (LAPT) are essential tools for shielding assets, preserving your legacy, and caring for future generations.

I invite you to use the link below to schedule a free consultation with me, and learn more about how my office can help you incorporate these strategies into your estate plan.

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