Protecting your vessel with a trust

[N1EYO]

I’m wondering about protecting everything I’ve been working for by placing everything in a non-revocable trust. Any lawyers here that could educate me?

[StuM]

Legal advice from an anonymous internet source is worth exactly what you pay for it.


(I've got this pain in my chest. Any doctors here that can tell me how I should treat it?)

[Calif.Ted]

I think the only thing a trust protects is your heirs from probate court when you die.
Stu, Since I was a paramedic 40 years ago I feel qualified to prescribe a cold beer, preferably draft but a "tinny" if you must.

[OldMan]

You didn't mention what you are trying to protect against by putting the boat in a trust?

[belizesailor]

Originally Posted by StuM

Legal advice from an anonymous internet source is worth exactly what you pay for it.


(I've got this pain in my chest. Any doctors here that can tell me how I should treat it?)

My father, an attorney, used to say the same thing about "free legal advice".

While there may be folks here who can offer some insight into the subject, in the end the OP needs pro guidance for attorney/accountant.

[keepondancin]

I have been working with an attorney to set up trusts for myself. The biggest problem with an irrevocable trust, is it is irrevocable. You appoint a trustee, and the trustee has complete control. You have no access to your assets, you can't decide to sell the asset and recoup your outlay, unless your trustee is willing to give you the proceeds. At 71, I personally cannot give up the control of my assets, even though it would be controlled by my daughter who I trust to yield to my wishes. I am probably going to do revocable trusts, and risk the 5 year look back, and if I feel the time is coming, change it to irrevocable and take the loss risk. Spent my life living MY life, can't give it up yet. Use a trusted attorney for guidance, but make your own decision.

[Dave852]

Originally Posted by N1EYO

I’m wondering about protecting everything I’ve been working for by placing everything in a non-revocable trust. Any lawyers here that could educate me?

An attorney will gladly take your 18k to set up the trust, they may or may or fully inform you about the 5k to 6k per year fee the Delaware trustee will suck out of your assets for ever after.

[Dockhead]

Originally Posted by belizesailor

My father, an attorney, used to say the same thing about "free legal advice".

While there may be folks here who can offer some insight into the subject, in the end the OP needs pro guidance for attorney/accountant.

I don't think there is anything at all wrong with finding out what others are doing or have hard about, PRIOR to getting professional help for money.


If you don't know what the possible benefits are of a scheme like this, then you don't know whether you need to talk to a real lawyer or not.


It's a perfectly reasonable question.

[belizesailor]

Originally Posted by Dockhead

I don't think there is anything at all wrong with finding out what others are doing or have hard about, PRIOR to getting professional help for money.


If you don't know what the possible benefits are of a scheme like this, then you don't know whether you need to talk to a real lawyer or not.


It's a perfectly reasonable question.

I agree, that was the point of my second paragraph.

[boat driver]

The question is why?
Speaking of USA law-
Trusts define the direction and intention of the "entrusted" assets and as well protect the assets from easy seizure particularly in liability lawsuits.
The type of trust then defines who controls etc. . The less an individual controls, the less the assets may be exposed to lawsuits. Be aware- if the trust owns the boat and lots of monies (investments), the trust no becomes liable for the boat. Kind of like having a pen of pigs- If one gets sick- the rest in the same pen are susceptible. If you separate into multiple pens- the other pigs are less susceptible.
With the estate planning it makes sense.
Back to question why?
If you are attempting to avoid liability insurance- not good idea.
If you are attempting to provide an additional firewall between you and the boat then maybe consider an LLC. (limited liability corp) .
Couple heads up- LLC s come in all kind of forms- so know the loop holes in each. many are like the Mexican border- a porous line in the sand that the lawyers cross every day.
For many if you own the LLC and are operating the boat - then the liability may pierce the LLC.
If you want to reduce the exposure even more- go to an incorporated level company ownership- and register in the Cayman Islands. Pretty much a solid wall.

[leboyd]

Definitely you need to contact a qualified attorney.

Trusts are cheap to set up and I can't imagine why you would want to put a boat in an irrevocable trust. A revocable trust, maybe.

[CSY Man]

. For many if you own the LLC and are operating the boat - then the liability may pierce the LLC.

My boat is owned by my LLC, but I also have a $1mill liability policy, hopefully that will slow
The piercing process

[wizoc]

The question should be can anyone recommend a trust and estate lawyer in my area!

[Maka]

I know for a Living Trust you don't want cars, planes, boats ,,,,,that sort of thing in the Trust.
The reason is liability. For instance, if the car was in a wreck, the law suit would be against the Trust since the Trust owned the car. Potentially the Trust could be wiped out because of the car.

Hope that helps.

[jmschmidt]

Wow! Some good but mostly bad or non-applicable info here. A living trust aka a "living revocable trust" has absolutely no asset protection qualities. Their main purpose is to avoid probate and public exposure to your financial situation. The is no five-year look back on a revocable trust.

A revocable trust may have asset and it may have a five- year look-back for the recent transfers of assets which means any transfers within five years can be determined to fraudulent transfers for the principal purpose to avoid creditors. This is a high bar to clear even with an offshore asset protection trust set up in the Cook Islands. US citizens and green card holders and so-called US tax persons, which can be anyone with certain connections to a US trade or business may not be able to escape the long arm of the IRS or the DOJ.