Yesterday I attended the Second Annual Ohio Asset Protection and Legacy Trust Institute. The Institute was a full day continuing legal education program of the Ohio State Bar Association. It was sponsored by a trust company and several major banks, as well as a large accounting firm. It was presented via live simulcast at seven
Ohio Court Pierces Corporate Veil and Holds Transfers to Shareholder Were Fraudulent
A recent decision by the Ohio Court of Appeals (Second District) held that the City of Springfield, Ohio was entitled to “pierce the corporate veil” of the defendant corporation in order to reach the shareholder’s assets. The court further held that transfers totaling about $900,000 to its shareholder (proceeds from the corporation’s sale of real
Ohio Legacy Trust Can Be A Good Prenuptial Tool
Ohio Revised Code §5816.03 (C) provides that certain creditors can defeat the spendthrift provisions of an Ohio Legacy Trust. This includes claims for child support and alimony. But the applicable provisions of the Ohio statute only apply to a “spouse or former spouse.”
This means that if an Ohio Legacy Trust is formed before you
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
Who Needs an Ohio Legacy Trust?
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
Information About 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
New Laws In Ohio Offer Much Better Asset Protection Alternatives
The 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
Ohio House Bill 479 Protects 529 Plans
Ohio House Bill 479, signed by the Governor on December 20, 2012 and effective in March of 2013, has a provision that specifically protects contributions to 529 plans.
A new provision was added to Section 2329.66 of the Ohio Revised Code to protect contributions to a so-called 529 plan. Funds held in such a plan
Ohio Raises Homestead Exemption to $125,000
Ohio House Bill 479, signed by Governor John Kasich on December 20, 2012, will raise Ohio’s homestead exemption from its current $21,625 to $125,000. The new law amends Section 2329.66 (A)(1)(b) of the Ohio Revised Code to provide for the higher amount.
The original version of the legislation had provided for an unlimited homestead exemption.
Ohio Enacts Domestic Asset Protection Trust Statute
Ohio 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