A recent release by a well-known Nevada asset protection lawyer ranks states by their domestic asset protection trust laws.  Ohio was ranked in the top 5 nationwide, at number 4 (behind only Nevada – in which the ranking lawyer lives and practices law, South Dakota, and Tennessee).

This ranking provides a good reminder that some states are much better than others with respect to asset protection.

The release, the 8th Annual Domestic Asset Protection Trust State Rankings Chart, also provides a quick summary comparison of state laws pertaining to domestic asset protection trusts.

By authorizing certain kinds of trusts and providing other ways to shelter assets, a state can more easily attract lucrative trust business.  States can also enact LLC statutes and other laws that help protect businesses and individuals.  Physicians, business owners and others who are at high risk of being sued should explore asset protection alternatives in states that provide the best protection.

In other words, a person exploring asset protection options might choose to create a domestic asset protection trust in Ohio, based on Ohio’s comparatively “strong” laws, rather than proceeding in his or her home state, which may have weaker laws or may not allow at all for creation of domestic asset protection trusts.

Finally, the same rankings release provides this Comparison Map, illustrating that only a minority of states nationwide even allow for the creation of self-settled domestic asset protection trusts, such as the type of trusts allowed under Ohio law.