Why a Personal Asset Trust May Be the Smartest Gift You Leave Your Loved Ones
Why a Personal Asset Trust May Be the Smartest Gift You Leave Your Loved Ones
When most people think about leaving an inheritance, they imagine a lump sum passed down to their children or grandchildren — a final gift representing a lifetime of work and savings. But what happens when that gift becomes vulnerable the moment it’s received? In California, where divorce rates are high and legal risks abound, leaving an inheritance outright can unintentionally expose your loved ones to serious financial threats.
At the Law Office of Richard M. Seff, we help clients across the West Valley and Beverly Hills rethink what it means to leave a secure legacy. A Personal Asset Trust (PAT) is one of the most effective estate planning tools available to protect your beneficiaries from external threats — and sometimes, even from themselves.
What Is a Personal Asset Trust — and How Does It Work?
Unlike traditional trusts that distribute assets outright once a beneficiary reaches a certain age, a Personal Asset Trust keeps inherited wealth inside a protected legal structure. The assets never become part of the beneficiary’s individual estate — meaning they are not exposed to:
- Divorce settlements
- Creditor lawsuits
- Poor financial management
- Addiction-related misuse
- Business liabilities or professional malpractice judgments
Instead, assets are distributed under carefully crafted terms, often with a trustee managing disbursements based on specific milestones, needs, or safeguards (like drug treatment conditions or regular financial check-ins).
Why a PAT Might Be Right for Your Family
California’s complex legal landscape — paired with the reality of modern family dynamics — makes a strong case for using a Personal Asset Trust in your estate plan:
- Divorce Protection: Inheritances are not automatically shielded from family court during divorce. A PAT can ensure your child's ex-spouse never touches their inheritance.
- Protection from Lawsuits: If your child is a doctor, lawyer, landlord, or business owner, they’re at constant risk for lawsuits. A PAT keeps inherited assets off the table.
- Overspending or Addiction Issues: You can assign a trustee to manage the trust if your beneficiary struggles with addiction or is simply not good with money.
- Multi-Generational Planning: A PAT can be structured to benefit not just your children, but your grandchildren too — while keeping the assets secure across generations.
Plan Now, Protect Later
You’ve worked hard to build a legacy — don’t let it unravel because of a preventable risk. Setting up a Personal Asset Trust gives you peace of mind that your loved ones will be supported and protected long after you’re gone.

At the Law Office of Richard M. Seff, we bring decades of estate planning experience and a deep understanding of California trust law to every case. From the initial consultation to drafting and funding your trust, we’re here to make the process clear, effective, and customized to your family’s needs.




