Berks County area veterans have options available to them to protect their assets. One is an Asset and Protection Trust. An Asset Protection Trust (APT) is an Intentionally Defective Grantor Trust. An Intentionally Defective Grantor Trust is a trust that treats the assets in the trust differently for income tax purposes from those for estate tax and gift tax purposes. The veteran will be the grantor, but not a beneficiary. The trust utilizes Internal Revenue Code § 671-677 which affords differential tax treatment for income tax purposes.

For most veterans, their major asset is their residence. As long as the veteran retains the home, it is not part of his or her net worth for Veterans Administration (VA) eligibility purposes; it is a “non-countable resource.” However, if the veteran qualifies for the monthly pension benefit and later sells the home, the proceeds will disqualify the veteran from receiving any further Veterans pension benefits — until the veteran spends down to an allowable asset level.

If you would like to learn more about protecting your assets, call our office at 610-378-5140 to set up a consultation. Note: The $300 consultation fee will be refunded if you retain us to perform services.