Asset Protection and Irrevocable Trusts
ASSET PROTECTION AND IRREVOCABLE TRUSTS
Qualified Terminable Interest Property Trusts
Qualified Terminable Interest Property Trusts (QTIP) are irrevocable, and as a result, provide asset protection immediately for those who create them if they are created properly. QTIP trusts have traditionally been used as testamentary trusts to provide for the surviving spouse and then for the children of the decedent spouse. However, under the Arizona Trust Code we can use QTIP Trusts as intervivos (between living persons), or living trusts that provide immediate asset protection for both spouses, as well as for their children in the future. These trusts also enable clients to maintain control of their assets while they are alive.
Limited Liability Companies
Limited Liability Companies are ideal for holding rental properties or other assets that may create liability for the owner. The assets of the owner of the LLC are not subject to any liability that arises within the LLC. Only the assets of the LLC itself are subject to any liability.
Family Limited Partnerships
Family Limited Partnerships can be used to own and manage your property, in a similar manner to a Trust, but allowing additional tax planning techniques to be employed. Family Limited Partnerships are typically used for those who have large estates and thus have a need for specialized estate planning in order to minimize taxes as well as provide asset protection.