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Private Retirement Trusts (PRTs) in California

Private Retirement Trusts (PRTs)

are becoming a popular way for California residents to plan for their retirement and ensure their financial stability in their golden years. PRTs offer a number of advantages over traditional retirement plans, including greater flexibility, control, and privacy. In this article, we’ll explore what PRTs are, how they work, and why they’re becoming so popular in California.

What is a Private Retirement Trust?

A Private Retirement Trust (PRT) is a type of trust that is established to manage and protect retirement assets. The trust is created through a trust agreement and is funded by the person establishing the trust, who contributes assets to the trust. The trust is then managed by a trustee, who invests the assets and makes distributions to the beneficiary (the person establishing the trust) during their retirement.

How does a PRT work?

A PRT allows the person establishing the trust to have greater control over their retirement assets. For example, the person can choose the types of investments that the trust invests in and can make changes to the investments as needed. The trust can also provide for the person’s spouse or other beneficiaries after their death.

In addition, PRTs offer greater privacy than traditional retirement plans, as the assets are held in a trust and are not subject to public disclosure. This can be especially important for individuals who are concerned about privacy or who have complex financial portfolios.

PRTs are also more flexible than traditional retirement plans, as they allow for distributions to be made as needed, rather than being subject to a set schedule. This means that the beneficiary can access their retirement assets when they need them, rather than having to wait until they reach a certain age.

Why are PRTs becoming popular in California?

PRTs are becoming increasingly popular in California for several reasons. One of the main reasons is the high cost of living in the state, which can make it difficult for many people to save enough money to support themselves during retirement. PRTs allow these individuals to manage their retirement assets more effectively and ensure that they have the resources they need to live comfortably in their later years.

Another reason for the popularity of PRTs in California is the state’s strong entrepreneurial spirit. Many business owners and entrepreneurs in the state are looking for ways to protect their assets and ensure their financial stability in retirement, and PRTs can help them achieve these goals. Under a little known and misunderstood California Creditor Exemption Statute (California Code of Civil Procedure Section 704.115), residents of California have a very powerful exemption for private retirement known as a “Private Retirement Trust” or “PRT.” When properly created and implemented, a PRT exempts all identified retirement assets from creditors, including bankruptcies and lawsuits. With proper asset qualification and supportable retirement analytics (i.e., a “Retirement Appraisal”), you can afford yourself the most protective exemption protection for your retirement assets that California has to offer.

Finally, the COVID-19 pandemic has also played a role in the popularity of PRTs in California. As people have become more aware of their own mortality, they’ve become more interested in securing their financial future and ensuring that they have the resources they need to live comfortably in their later years. A PRT can help provide this security and peace of mind.


  • Business Owners and Entrepreneurs
  • Executives
  • Professionals (Lawyers, Architects, CPAs, etc…)
  • Doctors and others in the medical profession
  • Contractors
  • Real Estate Developers
  • Anyone with major risk exposure to potential lawsuits or other legal threats

In conclusion, Private Retirement Trusts are a valuable retirement planning tool for California residents looking to manage their retirement assets more effectively, ensure their financial stability, and protect their privacy. With the help of a professional advisor, PRTs can provide a level of control, flexibility, and peace of mind that other retirement plans simply cannot match.