Client Alert

Protect Your Assets With A Private Retirement Trust (PRT)

You have spent your entire adult life contributing to your employer-sponsored retirement account and it has ballooned quite significantly over the years. With retirement on the horizon, you and your partner begin planning for the next chapter in your lives. What could go wrong?

Tragically, you are involved in a horrific car crash and must undergo countless physical therapy sessions and doctors’ appointments to recover. After several months in recovery, your health insurance company payment after you have reached the maximum number of visits.

Without health insurance, disability benefits and a limited income, you find yourself drowning in medical bills that you cannot pay. Within a few short years, creditors have seized nearly every penny of assets you own, including assets in both your and your partner’s retirement accounts.

By planning strategically, this scenario could have been avoided. How?

A Private Retirement Trust Can Save The Day

Thousands of business owners, individuals and families have benefited from the use of PRTs to protect their life savings. After a PRT has been created, you will make contributions solely for retirement purposes. You can contribute a diverse array of assets, including, but not limited to, savings, real estate, life insurance, annuities, stocks, home equity and cash. However, unlike traditional trusts, you do not have to relinquish control of the assets to a third-party.

The primary reason PRTs are so attractive, however, is because contributions are fully exempt from future creditors, lawsuits and bankruptcy filings. In addition, you will not be required to include contributions on IRS filings, pay income tax on earnings and are not limited on contribution amounts. Do not overlook the value of PRTs or wait until it is too late to consider creating one.

By taking advantage of this unique asset protection tool, you can ensure that you will not be left penniless when it comes time to receive monthly or annual distributions.

Posted in Asset Protection, Client Alert, Scenario.