Until recently, trusts were used almost exclusively by wealthy families to pass their wealth to succeeding generations. But it is no longer only the wealthy who are attracted to the powerful benefits offered by a PIT.
Asset Protection Trusts -
PITs Protect Your Family
Asset Protection Trusts -
PITs Provide Opportunity Shifting
The PIT is the Finest Financial gift
you can give your family.
It's asset are Totally Asset Protected.
For those who want to pass their business
to their children,
Totally Asset Protected and Estate Tax-Free
In a Pre-Inheritance Trust (a trust controlled by your son or daughter), your children can act as a co-trustee and exercise nearly all of the rights, benefits, and control over trust property that a person would have with outright ownership, but without exposure to creditors, lawsuits, divorce courts, or the IRS.
A PIT can be cleverly structured so it protects your assets as well as your children's. We form a PIT for your children. It owns an LLC. You are the manager of the LLC. You control the LLC and its activities. However you do not own interests. You and your children are 100% asset protected.
Here are the Elements of those Asset Protection Trusts Drafted as PITs
Person Who Sets the Trust Up. You for your children or your parents for you.
Beneficiary. Your children. If your parents set the trust up, you.
PITs are irrevocable Asset Protection Trusts. But the Protector can "Request" that the Trustee terminate it.
Trustee and Distribution Trustee. PITS, like all well drafted Asset Protection Trusts have two trustees. Your children are the investment trustees. The Distribution Trustee must be an, independent trustee as defined in the Internal Revenue Code..
The Distribution Trustee can be a friend, financial advisor or attorney.
Control. Your children via their selected Protector have the power to replace the Distribution Trustee which gives them the power to control the trust.
The PIT can acquire assets for your children's use and enjoyment.
The PIT can invest in a business that can employ your children.
Assets in the PIT are protected from the claims of your and your children's creditors, ex-spouses, the Estate Tax.
By proper construction, a PIT creates an insurmountable shield against the claims of creditors and ex-spouses. For those who want their children to have the use of their property and assets - and not their spouses, the PIT is a superior strategy to outright gifts. The inheritance becomes more valuable to the Primary Beneficiary in trust than through outright gifts. The assets can be used for living expenses, mortgage payments, new cars, and even vacations, all while having the added protections of a trust.
PITs are growing in popularity as middle class estates become larger.
For Technical Information About Pre-Inheritance Trusts (PITs),
