The Private Retirement Trust℠

True Asset Protection for California Residents

A Private Retirement Trust℠ (“PRT℠”) is a proprietary asset-protection trust that tactically supports exempt assets for California Private Retirement Plans. The PRT℠ is the first line of defense for any successful Californian because it offers “true” asset protection.

Whereas most asset protection planning involves the irrevocable “transfer” or “gifting” of assets to outside entities, such as estate planning trusts or offshore accounts, the PRT℠ instead simply utilizes state statute (law) to convert “exposed” assets to “exempt” assets. In this fashion, asset-owners can fully maintain current status and asset attributes, retain beneficial interests during lifetime, and yet receive the highest degree of asset protection from unwanted creditors. The California law (Section 704.115) is a statutory safe harbor that is impregnable by creditors. The funds in and the distributions from a California PRT℠ are virtually protected against creditor claims.

The greatest benefit of a PRT℠ is that a client can immediately receive full protection of funds, and can fully maintain asset protection even after distributions have been made. As long as the funds can be traced to a distribution from the PRT℠, the distributions can be invested however you choose. So if you purchase a boat, real estate, gold coins, stocks, etc. with these proceeds, then they are protected. This benefit allows a client to reserve the flexibility to do future advanced planning while enforcing continued protection against creditor attack.

Top PRT℠ benefits include:

  • immediate and absolute asset protection, without irrevocably giving up asset control.
  • self-direction of PRT℠ funding and investments, including private business interests.
  • continued protection of all PRT℠ distributions, regardless of future planning needs.
  • assets in the plan are completely protected from lawsuits and judgments, even in bankruptcy.
  • no requirement to cover other employees.
  • no annual IRS filings.

A PRT℠ does not:

  • provide tax deductions because it is tax-neutral and owners pay taxes just as if they owned the asset in their own name.
  • remove assets from the taxable estate, so assets are included in a client’s estate as a retirement benefit during his or her lifetime, which advanced planning can easily resolve this issue if desired.
  • invoke fraudulent conveyance by evading creditors because a PRT℠ simply maximizes state exemptions available to all Californians under California law.

The PRT℠ is simple, flexible, cost-effective, and yet the most powerful tool available to a Californian.