BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Probate avoidance
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Reducing estate taxes
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Avoiding liens and lawsuit from creditors.
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Asset protection
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All of the above
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Detailed explanation-1: -The four main types are living, testamentary, revocable and irrevocable trusts.
Detailed explanation-2: -Asset protection trusts offer a way to transfer a portion of your assets into a trust run by an independent trustee. The trust’s assets will be out of the reach of most creditors, and you can receive occasional distributions. These trusts may even allow you to shield the assets for your children.
Detailed explanation-3: -An irrevocable trust offers your assets the most protection from creditors and lawsuits. Assets in an irrevocable trust aren’t considered personal property. This means they’re not included when the IRS values your estate to determine if taxes are owed.
Detailed explanation-4: -With that said, revocable trusts, irrevocable trusts, and asset protection trusts are among some of the most common types to consider.