What is the Personal Asset Trust?

The “Old Way” of Estate Planning

In most Living Trusts, beneficiaries receive their inheritance outright – – either immediately the Living Trust owner is gone, or over a certain period of time, or at certain ages. In other words, the Living Trust owner’s assets are distributed out of the Living Trust right into the names of the beneficiaries. Unfortunately, now by owning their inheritance, the Living Trust owner’s beneficiaries are then needlessly exposed to the claims of spouses in divorce, creditors, lawsuits, the loss of government needs-based benefits and potential estate taxes when their inheritance is handed down to the next generation of beneficiaries.

The “New” and Better Way

Instead of receiving their inheritance directly, each of the Living Trust owner’s beneficiaries may instead receive their inheritance in a special trust, which springs out of the Living Trust.  This new sub-trust for each beneficiary is something called “The Personal Asset TrustSM”.  The The Personal Asset TrustSM can be controlled by each beneficiary in such a manner as to virtually give him or her all of the same rights as ownership, without the liability exposures ownership brings.

How the Personal Asset TrustSM Works

During the Living Trust owner’s lifetime, they will continue to put their assets into their Living Trust.  Once the Living Trust owner passes away, the assets are then distributed to the Living Trust owner’s named beneficiaries through a Personal Asset TrustSM.


The beneficiary may be his or her own initial Trustee in control of his or her own Personal Asset TrustSM”. The beneficiary may control the investing of his or her inheritance, how and when it is distributed and even who may receive it when that beneficiary passes away.  If the Living Trust owner wishes, this right may be limited.  For example, the Living Trust owner may only want the assets to be passed along to any lineal descendents.  This provision can be set up to do this.

One of the best features of the Personal Asset TrustSM” is that the level of asset protection allowed by the Personal Asset TrustSM” can be set up based on the needs of the beneficiary after the Living Trust owner has passed away.  This allows for “20/20 hindsight” and the flexibility to adjust the level of protection based on the beneficiary’s circumstances at any given time.  For example, if a moderate level of protection is appropriate, an independent Co-Trustee or sole Trustee may be brought in to sign on distributions. Or, if a greater level of asset protection is needed, an independent “Trust Protector” can lock down the Trust even more tightly from the attack of third parties. In either case, the beneficiary may continue to indirectly control his or her inheritance, while enjoying additional asset protection.

What Makes The Personal Asset TrustSM So Different

The idea of an inheritance being passed down to the beneficiary through a trust is not a new concept.  However, The Personal Asset TrustSM was uniquely designed to balance both the desire for potential asset protection along with the desire to allow the beneficiary the most flexibility to control his or her inheritance and adapt the protection level as needed.While containing many traditional features of an asset protection trust, The Personal Asset TrustSM is more simple in its design, and easier to understand and administer so that the beneficiary can feel comfortable using it.  It’s also built right into the Living Trust, which makes it much more affordable to set up!

We Didn’t Invent It!

While the actual Personal Asset TrustSM and the legal language contained within the trust was created by estate planning attorney, Philip Kavesh, it is based upon over 100 years of asset protection law.  Mr. Kavesh and his estate planning law firm have merely adapted and imported this technology right into the basic Living Trust. It is not what other attorneys may commonly refer to as a “Generation-Skipping Trust”, “Discretionary Trust” or “Dynasty Trust”.

The Personal Asset TrustSM is the result of over ten years of extensive research and development, along with thousands in fees paid to some of the nation’s top asset protection experts.

Take Advantage of This Unique Opportunity

The Personal Asset TrustSM is not available everywhere.  In fact, it is so unique that it is only offered by a small number of estate  planning attorneys throughout the country who have licensed the form to be able to enhance the plans they prepare for their own clients.  With the current status of the estate taxes, national Social Security system, and the fluctuation on Wall Street, protecting assets for future generations has become even more important.  Adding The Personal Asset TrustSM to your basic Living Trust will only cost a fraction of the price many attorneys charge for a typical asset protection trust and is meant for anyone that desires to offer this kind of protection for their beneficiaries.

DISCLAIMER: Please note that The Personal Asset TrustSM does not alone guarantee “bulletproof” asset protection for  beneficiaries.  It does add much enhanced protection over the typical Living Trust’s provisions. Other, more advanced planning measures, such as Family Limited Partnerships, LLCs or Irrevocable Trusts may be warranted if a greater level of asset protection is desired.  
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