Speak to a lawyer or consult an online legal document provider to help you construct your trust document. Trust laws vary by state. A lawyer licensed in your state can navigate through all pertinent laws and ensure you create a legally enforceable trust.
Enter the assets that need protection into the trust. This may include assets such as cars, stocks and bank accounts. Any assets you enter into the trust become property of the trust and are no longer yours.
Name beneficiaries of the trust. These individuals will receive trust property upon the happening of a specific event. Common events include the death of the settlor, the person who creates the trust, or a beneficiary's arrival at a certain age. Only a few states allow a settlor to also be the beneficiary of a trust since this violates public policy because it is a strong indication that the trust was created for the sole purpose of evading creditors. These types of trusts are commonly referred to as domestic asset protection trusts, or "DAPT trusts." If you'd like to establish a DAPT, first consult with an online legal document provider or attorney to determine whether your state allows them.
Name a trustee to control and manage the trust. These responsibilities includes such things as paying off debts and ensuring none of the trust property devalues. The settlor can outline any specific directions for the trustee to follow as well.
Finalize the trust document to ensure it becomes legally operative. Once the trust is complete, the assets officially become part of the trust and are fully protected from creditors. Again, it's important to note that full protection only occurs if you follow all pertinent state laws. If not, the trust can fail; thereby, leaving assets susceptible to creditors.