The discretionary nature of the trust is what makes the trust so powerful for asset protection. 

Because none of the beneficiaries own the trust assets and their only right is to be considered by the trustee, it is very difficult for someone to argue that the underlying assets of the trust belong to any one of the beneficiaries. 

If a particular beneficiary is sued or goes through a family law property settlement, it is more difficult for their creditor to access the assets in the trust to satisfy the claim against that particular beneficiary.

For tailored advice on how testamentary trusts can be used in your estate plan, contact us for an estate planning consultation.