By J. Paul Fidler on Posted in Domestic Asset Protection TrustsA 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… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Ohio Legacy TrustsAs I previously noted in a post back in 2013, you can establish an Ohio Legacy Trust without giving up complete control of your assets. Your Trust must be irrevocable and you cannot serve as your own Trustee. But you can still maintain significant control over the assets in the Trust if you want to… Continue Reading
By Ken Laino on Posted in Asset Protection Strategies/Alternatives,Domestic Asset Protection TrustsFor hundreds of years, trusts have had three key players. The settlor is the person who establishes the trust. The trustee is the person responsible for the operation of the trust. And the beneficiary is the person (or persons) who the trust is intended to benefit. Recently, a fourth role — that of the trust… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Fraudulent Conveyances,Ohio Legacy TrustsAbout 16 states now have laws that allow a Domestic Asset Protection Trust (DAPT). These trusts can be very useful to protect assets in many situations. But keep in mind that a DAPT (like other asset protection strategies) is designed to protect your assets and keep you out of bankruptcy. It may be less useful… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Ohio Legacy TrustsClients frequently ask about potential income tax aspects of an Ohio Legacy Trust. An Ohio Legacy Trust will likely have no effect at all on your income tax situation. The trust will be structured so that it is a grantor trust pursuant to §677 of the Internal Revenue Code. It meets the requirements of this… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection TrustsThe Mississippi “Qualified Disposition in Trust Act” takes effect today. Mississippi has now become one of about fifteen states that have a domestic asset protection trust statute. Each of these state statutes is different. But they all offer (with certain exceptions) an opportunity for creditor protection – – as long as appropriate formalities are followed. … Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Ohio law,Ohio Legacy TrustsOhio Revised Code §5816.06 requires an affidavit of solvency each time you transfer assets to an Ohio Legacy Trust. This is a fairly standard provision for transfers to Domestic Asset Protection Trusts in other states as well. In Ohio, failure to timely file such an affidavit may be used as a basis for an action… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Limited Liability Company,Ohio lawThe Ohio Legacy Trust Act (part of Ohio House Bill 479) becomes effective on March 27, 2013. Ohio will become one of approximately 15 states with what is commonly called a Domestic Asset Protection Trust Statute. Ohio House Bill 479 also increases the Ohio homestead exemption and makes other changes that offer better asset protection… Continue Reading
By Ken Laino on Posted in Divorce and Prenuptial Agreements,Domestic Asset Protection TrustsThe Ohio Legacy Trust Act, which will become effective in March of 2013, cannot be used to avoid child support or alimony payments. The new statute (part of Ohio House Bill 479) provides creditor protection under certain circumstances for assets contributed to a legacy trust (also commonly known as a domestic asset protection trust). But… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Ohio lawOhio now has a Domestic Asset Protection Trust statute. A new section 5816 of the Ohio Revised Code (the Ohio Legacy Trust Act) creates what is commonly known as a Domestic Asset Protection Trust. The new statute was signed into law by Governor Kasich on December 20, 2012 and will become effective in March of… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Ohio law,Personal ResidenceOhio House Bill 479 – – commonly known as the Ohio Asset Management Modernization Act (OAMMA) will affect a variety of asset protection strategies in Ohio. The new law was signed by Ohio’s Governor on December 20, 2012 and will become effective in March of 2013. House Bill 479 authorizes legacy trusts in Ohio. Ohio… Continue Reading
By Ken Laino on Posted in Asset Protection Strategies/Alternatives,Domestic Asset Protection Trusts,Offshore TrustsThere 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
By Ken Laino on Posted in Domestic Asset Protection Trusts,Fraudulent ConveyancesA number of states have enacted Domestic Asset Protection Trust (DAPT) legislation. Ohio may soon join those states. These statutes authorize what are known as "self settled" trusts. This essentially means that the person setting up the trust is also one of its beneficiaries. Thus, the person setting up the trust is attempting to protect… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Ohio lawLast month, the Ohio House of Representatives passed House Bill 479, which I have discussed in posts on May 1, 2012 and May 23, 2012. If the Ohio Senate goes along with the House, there will be a new Section 5816 of the Ohio Revised Code that provides for the Ohio Legacy Trust Act. This… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Ohio lawOhio 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
By Ken Laino on Posted in Domestic Asset Protection TrustsA domestic asset protection trust (DAPT) is one of many different entities that may (or may not) be an appropriate part of an asset protection plan. At least eleven states have enacted DAPT legislation. States that have DAPT statutes include Alaska, Delaware, Nevada, South Dakota, Hawaii, Missouri, New Hampshire, Rhode Island, Tennessee, Utah and Wyoming. While there are similarities, each… Continue Reading
By Ken Laino on Posted in Divorce and Prenuptial Agreements,Domestic Asset Protection Trusts,Fraudulent ConveyancesA recent decision by the United States Bankruptcy Court for the District of Alaska (In Re: Thomas Mortensen, Case No. A09-00565-DMD) is clearly worth reading — for a discussion of fraudulent conveyances, Alaska asset protection trusts, applicable statutes of limitations, and a variety of other asset protection topics. I will likely comment on this recent case in… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Offshore TrustsAlaska was the first state in the United States to pass a domestic asset protection trust statute. Prior to 1997, this type of protection could only be obtained in offshore jurisdictions such as the Isle of Man. A number of other states — including Delaware — have subsequently enacted similar statutes. There is now an ongoing… Continue Reading
By Ken Laino on Posted in Domestic Asset Protection Trusts,Irrevocable Life Insurance Trusts,Offshore TrustsAny trust that can help protect your assets from creditors requires that you surrender at least some control over those assets. This goes for an offshore trust; a so-called "domestic asset protection trust"; an irrevocable life insurance trust; and any other trust that gives you creditor protection. If you think about it, this is just common sense. If… Continue Reading
