Asset Protection Law Journal

Asset Protection Law Journal

Helping individuals and businesses take advantage of asset protection laws

Category Archives: Ohio law

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Many Asset Protection Considerations Depend on State Law

Posted in Asset Protection Strategies/Alternatives, Ohio law
 Asset protection statutes and case law vary significantly from state to state. More than ten states have enacted Domestic Asset Protection Trust (DAPT) legislation; but most states have not. There is still not a single reported court decision upholding (or striking down) DAPT legislation.  Not only can state statutes vary, but in the future, case… Continue Reading

Proposed Legislation Would Make Ohio a Leading Asset Protection Jurisdiction

Posted in Domestic Asset Protection Trusts, Ohio law
Ohio House Bill 479 — commonly known as the Ohio Asset Management Modernization Act (OAMMA) –would make Ohio a leading asset protection jurisdiction.  The proposed legislation would: Permit a so-called Domestic Asset Protection Trust (DAPT). Provide an essentially unlimited homestead exemption, similar to those in Florida, Texas and several other states. Specifically protect inherited IRAs.… Continue Reading

Important Changes to Ohio LLC Statute Take Effect on May 4, 2012

Posted in Limited Liability Company, Ohio law
Ohio House Bill 48 (signed by Governer Kasich on February 2, 2012) makes some significant changes to Ohio’s LLC law.  The new legislation (which becomes effective on May 4, 2012) affects Sections 1705.18 and 1705.19 of the Ohio Revised Code. The new legislation clarifies that a charging order is the sole and exclusive remedy for satifsying… Continue Reading

Ohio Court of Appeals Provides Guidance About “Piercing the Corporate Veil”

Posted in Ohio law, Piercing the Corporate Veil
The Ohio Court of Appeals (10th District, Franklin County) recently provided some very specific guidance about "piercing the corproate veil" in Ohio.  The case is Lind Stoneworks, Ltd. v. Top Surface, Inc., 194 Ohio App.3d 98 (10th District 2011). The trial court held a corporation and its sole owner liable for a corporate debt.  The… Continue Reading

Federal Judge Orders Convicted Defendant to Forfeit Pension Funds

Posted in Ohio law
A federal judge in Cleveland, Ohio recently ordered a convicted public official to pay $57,000 in damages by taking those funds from his retirement account.  An Ohio law passed several years ago specifically authorizes such an action if a public official has been convicted of certain crimes, including bribery.  The decision by U.S. District Judge… Continue Reading

Delaware Law Provides Stability and Certainy for Businesses and Their Owners

Posted in Asset Protection Strategies/Alternatives, Ohio law
Approximately 900,000 businesses are incorporated in Delaware, including 63% of all fortune 500 companies.  This is according to Rita K. Farrell in a recent New York Times article. In various other posts, I have explained how Delaware’s LLC statute provides better asset protection for LLC owners than the law in many other states.  The Delaware law… Continue Reading

Delaware is a Good Choice for an LLC

Posted in Limited Liability Company, Ohio law
As I mentioned in a post last month, limited liability company laws vary significantly from state to state.  Depending on your particular circumstances, one state could have significant advantages over another. Here are a few reasons why Delaware is one of the best states to form a limited liability company from an asset protection standpoint:… Continue Reading

Ohio Court Affirms the “Internal Affairs Doctrine”

Posted in Ohio law
The "Internal Affairs Doctrine" means that the law of the state of incorporation normally determines issues relating to the internal affairs of a corporation.  For example, if there is a dispute between two shareholders of a Delaware corporation, it would typically be decided using Delaware law, even if the company operates in another state.  This… Continue Reading

Creditors Have Many Options Once They Have a Judgment Against You

Posted in Creditors' Rights, Fraudulent Conveyances, Ohio law
An article in the September 20, 2009 Business section of the Cleveland Plain Dealer contains a good summary of the various remedies available to a creditor who has a judgment against you.  Cleveland Plain Dealer columnist Sheryl Harris is discussing a $3,000 judgment obtained in a small claims court in Rocky River, Ohio; but the… Continue Reading

Fraudulent Conveyances

Posted in Fraudulent Conveyances, Ohio law
Asset protection planning generally involves transferring and/or re-titling some or all of your assets in order to better protect those assets from claims of creditors. Not surprisingly, however, there are statutory prohibitions against transferring your assets with the intent of avoiding your legal obligations. Whenever any assets are transferred or re-titled for protection purposes, it is critical… Continue Reading

Protecting Your Home from Creditors — Huge Variations in State Laws

Posted in Ohio law, Personal Residence
A debtor’s personal residence is a natural target of his or her creditors. Some states (Florida, in particular) provide special protection for your home against claims of creditors. Currently, Florida’s protection is so strong that some debtors have re-located to Florida solely to take advantage of this protection. Texas also provides a very strong homestead exemption. Ohio, however, currently provides… Continue Reading

Piercing the Corporate Veil

Posted in Limited Liability Company, Ohio law, Piercing the Corporate Veil
Corporations and limited liability companies (LLCs) provide significant liability protection to their owners.  Shareholders of corporations and members of limited liability companies generally are not responsible for debts of the corporation or LLC.  A recent Ohio case, however, serves as a reminder that creditors may attempt to "pierce the corporate veil" and hold an owner… Continue Reading
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