Whether you're just getting around to planning your estate or you're reviewing the existing plan that you have in place, you likely are well aware of how important asset protection is to this process. Setting up a trust in Delaware carries with it many different benefits, especially when it comes to maximizing your wealth or preserving your assets.
Setting up a Delaware trust in a great option for if you want to grow your assets. A trustee can award payouts of up to 5% of the many assets contained in the trust to beneficiaries per the Total Return Unitrust statute. The rest of the assets contained within can be invested in long-term growth opportunities so that the future needs of beneficiaries can be met.
Another great benefit associated with Delaware trusts is that they allow for the trust owner and trustees to have a lot more flexibility over how they'll handle investments that they make and how distributions are made.
Many individuals decide to set up a Delaware trust as a type of tax shelter. It can be effectively used to reduce an individual's capital gains and income tax burden. Also, since assets can remain in a Delaware trust perpetually, many people find that it's advantageous to transfer more assets into them. They avoid being hit with a tax bill when they do so.
Delaware trusts are particularly effective in protecting beneficiaries' assets if they become incapacitated or financially imprudent. They protect them from being tapped in to pay alimony or creditors. An asset protection planning attorney in Middlesex can explain why you as a New Jersey resident may find it helpful to set up a Delaware trust to place some of your assets into.