What Is an Asset Protection Trust?

An asset protection trust (APT) is a legal arrangement where you transfer assets into a trust, placing them under the control of a trustee. Because the trust owns the assets—not you personally—they may be shielded from creditors, judgments, or legal claims. 

Some APTs are domestic (created within the United States), while others are offshore (established in foreign jurisdictions with stronger protections). Ohio law recognizes certain domestic asset protection trusts, making them a valuable option for local residents.

Benefits of an Asset Protection Trust

Creating an APT provides powerful safeguards, including:

• Creditor Protection – Assets may be protected from lawsuits and collections.
• Business Security – Protect personal wealth from professional liability.
• Estate Planning Efficiency – Combine asset protection with inheritance planning.
• Tax Advantages – In some cases, reduce estate or gift tax exposure.
• Peace of Mind – Know that your legacy is secure, even in uncertain times.

Who Should Consider an Asset Protection Trust?

An APT may be right for you if you:

• Own a business or professional practice with liability exposure.
• Want to protect assets from potential lawsuits or creditors.
• Have significant real estate or investment holdings.
• Desire to safeguard wealth for your children and grandchildren.
• Are concerned about long-term care costs and Medicaid planning.

Asset Protection Trusts vs. Other Trusts

It’s important to understand how APTs differ from other types of trusts:

• Living or Revocable Trusts – Offer probate avoidance and flexibility but no creditor protection.
• Irrevocable Trusts – Provide protection, but with less flexibility once created.
• Asset Protection Trusts – Specifically structured to guard assets against claims while also fitting into an overall estate plan.

Why Work With a Cincinnati Trust Attorney?

Asset protection planning is complex, and mistakes can render a trust ineffective. A Cincinnati trust attorney can:

• Determine if an APT is right for your situation.
• Draft a legally compliant trust under Ohio law.
• Advise on the right type of trust (domestic vs. offshore).
• Help fund the trust properly with your assets.
• Integrate asset protection into your overall estate plan.

Take the Next Step

Your wealth is too important to leave unprotected. By setting up an asset protection trust, you can secure your financial future and ensure your family’s stability for years to come.
Protect your family. Call to setup an appointment with Krugler Law. (513) 916-1600.