In the example illustration above Mr. & Mrs. Jones would place their home in an asset holding trust and their autos in an asset holding trust. All financial assets, i.e. stocks, savings, insurance policies etc., would go into the primary trust and continue to show separate ownership within the Primary Trust. The assets would then be owned by the trusts and not by the Jones family. However, Mr. & Mrs. Jones would remain the sole primary beneficiaries and the only ones that would enjoy the use and control of the assets, the income the assets may generate and the final disposition of the assets to their chosen heirs.
By having the assets owned by the various trusts, the assets are not shown to be owned by Mr. & Mrs. Jones. On county property tax records the properties would show they were owned by the specific trusts that the properties were deeded into. In a search of property records, a casual observer would not see a connection between Mr. and Mrs. Jones and any specific property.
For Example: If one were to look up Mr. Jones’ name in the county property tax records, it would show all of the property Mr. Jones owns in that specific county. Or if one were to look up a specific address, say 1741 Unprotected Rd., it might show that Mr. & Mrs. Jones as Joint Tenants or Tenants in Common owning that property. This is a very dangerous way to hold property. It would be wise to have an irrevocable trust, let’s say the Home Sweet Home Trust, owning the property. It would not have the Jones family’s name indicated anywhere. The beneficiary of the Home Sweet Home Trust would be their Primary Trust. That is privacy. And that alone offers a great deal of protection from predators. The same is true for other assets. Also, since the Jones family doesn’t own the assets they are not liable for the problems the asset may cause. For example: Suppose Mr. Jones’ brother is driving his auto and gets in a massive wreck, injuring people. If a judgment comes down for more than the auto was insured for, who may be responsible for the additional obligation? If Mr. & Mrs. Jones owned the auto, they might be. If a trust owns the auto, the trust would be. If the trust only owns the auto and the insurance policy, that is all the injured party can get. They can’t go after any of the other assets. Those assets are owned by completely separate trusts. The injured party can’t go after the savings account, brokerage account, home or anything that is in other trusts. Those assets are owned by totally separate trusts
It is prudent for people to protect their assets from the perils of Probate, Excessive Taxes, and Liability. Therefore I recommend that people carefully consider the Premier Life Estate Trust. Property that is in the trusts will escape many liabilities created simply because the grantors don’t own the property. The various trusts do. The grantors will, however, own a “Life Estate” in the properties. That means that they own the right to use and enjoy the assets, spend any and all income that the assets generate, dictate who will receive the assets when they die, and choose the trustees who will oversee the trust activities.
In their trust program the grantors will receive a detailed setup and operation guide that will walk them through each and every step necessary to transfer all of their assets into the respective trusts. Once that has occurred, the assets are not liable for any of their personal actions or the actions of the other assets in the other trusts.
An Important Reminder: If someone has already suffered a loss from you or one of your assets and you then move the asset into an irrevocable life estate primary or holding trust, those assets may not escape the liability that previous damage caused. However, any future damages caused by you or the assets in trust may not expose all of the assets where they could possibly be lost all at the same time! I look forward to hearing from you.
MDF Estate Planning Services, Inc., 1196 W. So. Jordan Pkwy, Suite D, South Jordan, UT 84095 801-563-9780