Some states are coming up with newer incentives for establishing trusts, so it pays to look around.

Picking the right location is the key to being successful in real estate. This is a very crucial decision in the world of trust funds as well. In order to bring in a piece of the trust business, some states recently have enacted laws designed to make it attractive to establish trusts within their borders. As a result, it's possible to improve your trust's return, life span, and defenses against creditors simply by locating it in a particular state.

To choose which state you want your trust to be depends on your goals. For example, to maximize your trust's returns, you might want to pick a state that has no income tax, or at least none on trusts. On the other hand, those intending on having a lasting legacy can choose a state that allows trusts to live forever instead of for a few generations. If legal liability is a concern, you might look at the few states permitting ''domestic asset protection trusts," or trusts that are designed for your benefit, while still protecting the assets from others.

However, there is a word of warning: Since these trusts are irrevocable, you can't change your mind once you set one up.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.