Whether you live in Tullahoma or out of state, Tennessee is joining the ranks as a prime place to establish a trust. As Wealth Advisor describes, Tennessee offers greater flexibility than many states, and is now a top three state for asset protection to some publishers.
The reason for this shift in perspective is new laws that empower you with a variety of tools for administering your trust. Beforehand, Tennessee stipulated that trusts restricted your administration in their writing. Now, with the right planning, a new or moved trust may help protect your assets in a big way.
Your estate toolbox
Tennessee trust laws permit you to create “self-settled” trusts which keep your assets protected from creditors in various ways. This may serve as protection in combination with a prenuptial agreement to protect any assets brought to the marriage. They might also protect assets from consideration in a damages case.
Another favorable advantage is the decanting statute which allows you to move assets from one irrevocable trust to a new one with updated provisions.
Your wealth resource
Trusts already have many advantages over wills including the privacy and flexibility that comes from Tennessee’s laws allowing you to create your future the way you want. With the right provisions, you may limit federal estate and capital gains taxes. You may protect distributions so that they stay private for however long you need and go out to your trustees when you wish.
All you need is a well-drafted trust that dictates your wishes according to whatever plan works best for you. Tennessee law and the right amount of planning may help you plan for your best future with the property and assets you earn.