Asset Protection Trust
Ever heard the term trust fund baby? (If you are one, please have us over for a very expensive dinner. We’ll bring the cheap wine that you’ll complain about later.) Trust funds aside, domestic asset protection trusts are specialized trusts set up to protect your assets from creditors...and to minimize taxes.
As noted by ASTEC (2017), these trusts are irrevocable, with the trust being managed by an independent trustee. The thing to know is that the trustee wears the pants in the deal. He or she is the decision maker in terms of how funds are distributed. As of 2017, just 17 states offered these options.
Related or Semi-related Video
Finance: What is a PERLS?9 Views
finance a la shmoop what is PERLS all right well there's the kind that comes
in nuggets of wisdom the kind that sings and the kind you wear and none of them [Woman in a fancy dress]
have anything to do with this kind of pearls, PERLS stands for principle
exchange rate linked security right well what is it it's just a normal issue
bonds that pays interest twice a year but whose yield is linked see the L
there to a given foreign exchange rate the base currency in pearls is the US
dollar but the interest rate paid is based on a foreign ie
non US currency and the way that it's linked has a whole lot of flexibility in
real life so we'll just go through one example here say a set interest rate is [Man discussing PERLS]
five percent on a thousand dollar pearls if interest were paid in US dollars well
then everything would be easy you just take grand times 0.05 and you get 50
bucks twice a year and that's what you'd be getting as interest if you owned that
pearls easy it's just a bond but it's a little different with the pearls in that [Person pushes Easy button]
if interest is being paid well say in Euros for example and let's say the euro
is trading at 80 cents on the US dollar or rather you can buy a euro for 80
American cents while you'd be then collecting interest on that thousand [American coins and a 1 euro coin appear]
dollar bond in euros in this case that is instead of five percent on the grand
paid at 50 bucks well you'd instead get 60 euros because a single US dollar buys
you 1.2 euros at this exchange rate moment in time and pearls can be set up
in a variety of ways like the interest rate itself can fluctuate like you could
get a fixed number of euros per thousand dollar bond issue or other currencies or
other elements or securities that it could be linked to really complex and a
north whole lot of study here in this video so what yeah sadly you can't pay [Shmoogle search bar appears]
your interest in pearls of wisdom but you know what they say money can't buy
happiness unless you have an Amazon Prime account and there's a half-off [Elderly woman talking to children]
Memorial Day yeah you know a special discount that one's a freebie
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