Asset protection trusts cover a variety of legal concepts. In these discretionary trusts, a trustee holds property until it is transferred to a beneficiary at the trustee’s discretion. Most trusts have guidelines for the trustee to follow regarding the distribution of property, and these rules protect the asset and its owner.
The Advantages of Discretionary Trusts
Asset protection trusts can be advantageous in many cases. They carry benefits such as:
Providing the trustee with more control over the asset distribution and decision-making processes
Protecting the asset from the beneficiary’s wasteful behavior
Helping property owners to keep distribution records
Preventing the property from being taxed under the estate once it is included in the trust
If a beneficiary is young, the discretionary trust may include instructions for a trustee to distribute the assets at a later date. Such provisions help to avoid risks like overspending, which is quite common among younger beneficiaries. Additionally, some trusts offer extra tax benefits and incentives.
In Case of a Dispute Over a Discretionary Trust
Disputes sometimes arise in asset protection trusts. Sometimes, more than one person may claim beneficiary status for the same assets, and in other cases, trustees violate their duties. In other instances, trust property may be transferred illegally. Those involved in trust disputes should consult Asset Protection Lawyers Rockland County NY to learn about their rights under the law.
Discretionary trust disputes are typically resolved by filing a lawsuit. In most situations, courts award damages to help the victim recover their losses. However, in other cases, the court might order that the asset be transferred to a specific party. The resolution of the dispute depends on the facts of the case.
Should a Person Hire an Attorney for Resolution of a Trust Dispute?
There are multiple types of discretionary trusts, and each has its own characteristics. One may need to hire Asset Protection Lawyers Rockland County NY if they need help in creation or revision of a trust agreement. Moreover, one may need an attorney’s help if they decide to file suit because of trust disputes. Mark Aberasturi can represent the party in court, helping them to recover damages or get another legal remedy.