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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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

What Are The Best Asset Protection Jurisdictions?

Posted in Asset Protection Strategies/Alternatives, Domestic Asset Protection Trusts, Offshore Trusts
There are many factors to consider in deciding whether a particular jurisdiction is or is not favorable from an asset protection standpoint.  Certain states and foreign countries are clearly better than others.  There is a constant tension between the legal rights of creditors and debtors; and each jurisdiction is to some extent more or less… Continue Reading

Umbrella Policy

Posted in Asset Protection Strategies/Alternatives, Insurance
A so-called umbrella policy can provide substantial insurance coverage at a modest cost. There are many reasons you need to protect your assets.  We often focus on business and professional risks, economic problems, divorce and other catastrophic events.  But disaster frequently strikes from much more routine events — like an auto accident. Let’s say you… Continue Reading

Control of Electronic Assets After Death

Posted in Asset Protection Strategies/Alternatives, Benefits of Asset Protection Planning
As I mentioned in a post last March most of us now have multiple on-line accounts; and very few people consider what happens if they die and no one can access those accounts. One of my associates, David M. Lenz, recently published an excellent article on this topic titled "Afterlife on the Cloud".  As Dave mentions,… Continue Reading

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

Asset Protection Planning Should Have a Multi-Generational Focus

Posted in Asset Protection Strategies/Alternatives, Benefits of Asset Protection Planning, Estate Planning
It is generally estimated that more than half of all Americans have absolutely no estate planning documents.  This can potentially create a lot of hassles for your loved ones. But even those Americans with very good estate planning documents often fail to focus on asset protection for their children and other beneficiaries.  If you simply… Continue Reading

Asset Protection Planning is Often Possible After You Have Creditor Issues

Posted in Asset Protection Strategies/Alternatives, Fraudulent Conveyances
It is clearly better to engage in asset protection planning before you have any creditor issues.  But planning after a lawsuit has been filed — or even after a judgment has been entered against you — is frequently possible. State fraudulent transfer statutes vary in a number of respects.  But as a general rule, a conveyance… Continue Reading

Planning Still Needed — Even if you Intend to Leave Nothing to the Kids

Posted in Asset Protection Strategies/Alternatives
In a recent survey of millionaire baby boomers (by U.S. Trust), less than half of the respondents said it was important to leave money to their children when they die.  That is according to an article in last Friday’s Los Angeles Times by Walter Hamilton. But here is an important reminder:  asset protection planning (and estate planning) is still… Continue Reading

Offshore Bank Accounts Are Still Advisable for Many Americans

Posted in Asset Protection Strategies/Alternatives, Offshore Trusts
Offshore bank accounts have been getting more and more scrutiny in recent years.  An article in last week’s Bloomberg News by David Voreacos outlines yet another U.S. investigation relating to foreign banks.  Eight offshore banks are now under a federal grand jury investigation — for facilitating tax evasion by U.S. citizens. But none of this means… Continue Reading

Single Premium Whole Life Insurance Policy Can Provide Asset Protection

Posted in Asset Protection Strategies/Alternatives, Insurance
Certain life insurance products (as well as certain arrangements like an irrevocable life insurance trust) can provide asset protection advantages.  For example, if you have a significant amount of cash that is not otherwise needed, and you also have the need for life insurance, a single premium whole life policy might be appropriate.  Cash that… Continue Reading

The Delaware Chancery Court

Posted in Asset Protection Strategies/Alternatives
The Court of Chancery in Delaware is well respected by business lawyers from coast to coast.  A recent New York Times article (which I discussed in another recent post) explains that the Delaware Chancery Court has a reputation for quick and knowledgeable business decisions.  This is one of several reasons that so many businesses are incorporated… 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

Sign of the Times: “Black Swan Funds” to Protect Against “Tail Risk”

Posted in Asset Protection Strategies/Alternatives
Some new investment vehicles — called "black swan funds" — are designed to go up in value if there is an economic collapse.  They are designed to protect against what some investment professionals are calling "tail risk" (basically meaning the economy going into some sort of disastrous tail spin). Not all analysts are sold on this… Continue Reading

Too Many Lawyers?

Posted in Asset Protection Strategies/Alternatives
Given the poor state of our economy in recent years, one would expect that the number of lawyers in the United States would be declining. There has been significant downsizing at larger law firms. Many businesses have been deferring some discretionary legal services. So one would expect a decreased demand for lawyers. But according to James Podgers (writing… Continue Reading

Small Business Owners and Public Company Executives Both Need Asset Protection Planning

Posted in Asset Protection Strategies/Alternatives, Benefits of Asset Protection Planning
A June 8, 2011 New York Times article by Steven M. Davidoff (a law professor at the University of Connecticut School of Law) notes that personal liability for directors and officers of large publicly held companies is less common than most of us think.  Professor Davidoff argues that the upside of serving as a director or… Continue Reading
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