Asset Protection Law Journal

Asset Protection Law Journal

Helping individuals and businesses take advantage of asset protection laws

Category Archives: Asset Protection Strategies/Alternatives

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Asset Protection Beyond the Grave: Claims Against a Deceased Person’s Assets

Posted in Asset Protection Strategies/Alternatives, Estate Planning, Ohio law
In 2017 there have been a variety of discussions among leading estate planning attorneys about the extent to which Ohio law now protects a deceased person’s assets from the claims of a creditor.  For many years it has been clear that a creditor could make claims against the probate assets (assets passing under a will)… Continue Reading

Some States Dramatically Better Than Others For Asset Protection

Posted in Asset Protection Strategies/Alternatives, Ohio law
A recent article in The New York Times provides a good reminder that some states are much better than others with respect to asset protection. The article by Patricia Cohen is titled “States Vie to Shield the Wealth of the 1 Percent”.  By authorizing certain kinds of trusts and providing other ways to shelter assets,… Continue Reading

Successful Asset Protection Comes from Protecting Assets — Not Hiding Them

Posted in Asset Protection Strategies/Alternatives
A front page article that appeared on the Wednesday, April 6, 2016 New York Times provides yet another example of the dangers of hiding assets. Successful asset protection makes use of laws that allow you to protect your assets — while keeping them in full view. Hiding assets frequently involves illegal activity; and even when legal it… Continue Reading

Business Succession Planning Is Critical For Company Founders

Posted in Asset Protection Strategies/Alternatives, Business Protection, Business Succession Planning
An article in the New York Times on March 24, 2016, emphasizes the critical need for succession planning in closely held companies. While business succession planning is important at various levels, the fall–out for companies that lose a founder can be particularly bad. The article notes that most small businesses are family owned, and those… Continue Reading

Majority of Public Companies Continue To Incorporate In Delaware

Posted in Asset Protection Strategies/Alternatives
A front page article by Liz Hoffman in Monday’s Wall Street Journal noted that some companies are convinced Delaware is less of a corporate haven than it used to be.  Some companies feel the state has become less hospitable toward business (for example, by not doing enough to curb ever-growing shareholder litigation).  Nevertheless, Delaware remains… Continue Reading

Insurance Should Be Part of Your Asset Protection Plan

Posted in Asset Protection Strategies/Alternatives, Insurance
Articles that seemingly have nothing to do with asset protection might still provide valuable asset protection reminders.  A recent article by Teresa Dixon Murray in the Cleveland Plain Dealer is a good example.  The article discusses an individual who keeps more than $100,000 hidden at home!  That reminds me of at least two asset protection… Continue Reading

Two or More APTs May Be Advisable In Some Situations

Posted in Asset Protection Strategies/Alternatives, Domestic Asset Protection Trusts, Ohio Legacy Trusts
In Ohio (as in other states that have enacted a Domestic Asset Protection Trust Statute), it may be advisable to have two or more trusts as part of an overall asset protection plan. For example, a husband and wife may each want to have their own, separate Ohio Legacy Trust.  Not only can this help… Continue Reading

Ohio is Currently One of the Best States for Asset Protection

Posted in Asset Protection Strategies/Alternatives, Ohio law, Ohio Legacy Trusts
Some states offer better asset protection alternatives than others.  There are numerous factors to consider in deciding how good (or bad) a state is from an asset protection standpoint.  These factors include: Whether or not the state has a Domestic Asset Protection Trust Statute Provisions of the state’s LLC statute The state’s homestead exemption and… Continue Reading

Lawyers Can Face Severe Consequences For Helping a Client With a Fraudulent Conveyance

Posted in Asset Protection Strategies/Alternatives, Fraudulent Conveyances
Courts in a number of states have specifically held that lawyers can violate applicable disciplinary rules by facilitating fraudulent conveyances.  This can result in an attorney being suspended or even disbarred.  This is one of the reasons that an attorney must conduct a certain amount of due diligence about a new client before agreeing to… Continue Reading

Asset Protection Strategies Can Have Significant Tax Consequences

Posted in Asset Protection Strategies/Alternatives
Asset protection requires expertise in many different areas of law.  One key area is litigation, since the ultimate test of any asset protection plan is how well it will hold up in court.  Asset protection attorneys must also have expertise in business entities (particularly limited liability companies); trusts; and estate planning (since asset protection planning… Continue Reading

Trust Protector Can Provide Added Flexibility For An Irrevocable Trust

Posted in Asset Protection Strategies/Alternatives, Irrevocable Life Insurance Trusts, Offshore Trusts, Ohio Legacy Trusts
A recent article in the New York Times by John F. Wasik provides an excellent discussion of trust protectors.  Many states now allow for trust protectors – – someone other than the trustee who essentially provides some checks and balances in a trust arrangement. A trust protector is a bit like a watchdog.  He or… Continue Reading

Considering an Offshore Trust? Then Consider the Cook Islands

Posted in Asset Protection Strategies/Alternatives, Offshore Trusts
Many foreign jurisdictions provide opportunities for offshore trusts.  But if you are seriously considering such a trust, the Cook Islands deserve your attention. Asset protection lawyers frequently debate the pros and cons, risks and possible rewards of offshore versus domestic asset protection trusts.  And there are lots of potential asset protection strategies that do not… Continue Reading

Are We Already Forgetting the Impact of the Recent Recession?

Posted in Asset Protection Strategies/Alternatives
How much did the recent recession actually cost?  A fascinating article by Eduardo Porter in yesterday’s New York Times provides some startling information about the cost of the recession.  Three economists at the Federal Reserve Bank of Dallas have estimated that at a bare minimum, the crisis cost nearly $20,000 for each American.  Adding in… Continue Reading

Basic Exemption Planning Should Come First

Posted in Asset Protection Strategies/Alternatives
There are many asset protection alternatives.  These include offshore trusts, domestic asset protection trusts (called Ohio Legacy Trusts in Ohio), irrevocable life insurance trusts and limited liability companies.  But relatively simple exemption planning should always be the initial focus.  Exempt assets (those which applicable laws already make it difficult or impossible for creditors to reach)… Continue Reading

Asset Protection Trust Should Have Provision Allowing Trustee to Change Situs

Posted in Asset Protection Strategies/Alternatives, Domestic Asset Protection Trusts, Ohio Legacy Trusts
Earlier this year Ohio joined a number of other states that allow creation of a domestic asset protection trust.  In Ohio, it is called an Ohio Legacy Trust. Ohio law (just like the law of every other state) can change at any time.  We currently anticipate no significant change in the new Ohio domestic asset… Continue Reading

Consider Separate Entities for Your Business

Posted in Asset Protection Strategies/Alternatives, Business Protection
All of the assets relating to your business operation do not necessarily have to be in the same company.  There may be perfectly valid business reasons to have real estate, equipment and/or other assets in separate entities.  The following chart provides an example of a possible business structure. Many assets in the above structure are… Continue Reading

Trusts Require Flexibility

Posted in Asset Protection Strategies/Alternatives, Domestic Asset Protection Trusts, Irrevocable Life Insurance Trusts, Offshore Trusts, Ohio Legacy Trusts
Asset protection planning (and estate planning) frequently involves the use of one or more trusts. Possibilities include an offshore trust, Domestic Asset Protection Trust, irrevocable life insurance trust and various other kinds of trusts.  Most of these trusts are designed to last for many years. It is therefore important to give the trustee the flexibility to adjust… Continue Reading

Who Needs an Ohio Legacy Trust?

Posted in Asset Protection Strategies/Alternatives, Domestic Asset Protection Trusts, Ohio law, Ohio Legacy Trusts
Here are some of the people who should at least consider setting up an Ohio Legacy Trust: Business owners CEOs and Directors Physicians Accountants Attorneys People considering marriage Others who are willing to part with total control of a portion of their assets The following chart (prepared by my partner, Paul Fidler) provides some general… Continue Reading

Information About Ohio Legacy Trusts

Posted in Asset Protection Strategies/Alternatives, Ohio law, Ohio Legacy Trusts
The link below provides some general information about Ohio legacy trusts. The material is from a presentation given by my firm on March 26, 2013 (the day before the Ohio Legacy Trust Statute took effect).  www.ssrl.com/attachments/download/106/Ohio%20Asset%20Management%20Modernization%20Act.pdf This new kind of trust is not for everyone. But for some Ohio residents, it could be a valuable way to… Continue Reading
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