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).
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Settlor Can Retain a Lot of Control Over an Ohio Legacy Trust
As 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
Living in One State and Setting Up a Trust in Another
Can you set up a trust in a state that you do not reside in? The answer is yes. You can set up a trust in a country you do not live in. As a resident of Ohio, I can establish a trust in Delaware or Alaska or the Cook Islands or almost anywhere else.
Trust Protectors
For 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
Keep Bankruptcy Code §548(e) in Mind if You Have a DAPT
About 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
Two or More APTs May Be Advisable In Some Situations
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
Ohio Legacy Trust Not Likely To Affect Your Income Taxes
Clients 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
Mississippi is Latest State to Enact DAPT Statute
The 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.
Asset Protection Trust Should Have Provision Allowing Trustee to Change Situs
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
Affidavit of Solvency is a Reminder to Plan Before You Have Creditor Problems
Ohio 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