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
Majority of Public Companies Continue To Incorporate In Delaware
A front page article by Liz Hoffman in Monday’s Wall Street Journal noted that some companies are convinced Delaware is less of a corporate haven than it used to be. Some companies feel the state has become less hospitable toward business (for example, by not doing enough to curb ever-growing shareholder litigation). Nevertheless, Delaware remains
Insurance Should Be Part of Your Asset Protection Plan
Articles that seemingly have nothing to do with asset protection might still provide valuable asset protection reminders. A recent article by Teresa Dixon Murray in the Cleveland Plain Dealer is a good example. The article discusses an individual who keeps more than $100,000 hidden at home!
That reminds me of at least two asset protection
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 is Currently One of the Best States for Asset Protection
Some states offer better asset protection alternatives than others. There are numerous factors to consider in deciding how good (or bad) a state is from an asset protection standpoint. These factors include:
Whether or not the state has a Domestic Asset Protection Trust Statute
Provisions of the state’s LLC statute
The state’s homestead exemption and
Ohio and Several Other States Protect Inherited IRAs
As I noted in a blog post a couple days ago – –
On June 12, 2014, the U.S. Supreme Court unanimously ruled that inherited IRAs are not exempt from creditor claims in bankruptcy. So in general, inherited IRAs do not have as much protection from creditors as many advisors thought they did. But
Lawyers Can Face Severe Consequences For Helping a Client With a Fraudulent Conveyance
Courts in a number of states have specifically held that lawyers can violate applicable disciplinary rules by facilitating fraudulent conveyances. This can result in an attorney being suspended or even disbarred.
This is one of the reasons that an attorney must conduct a certain amount of due diligence about a new client before agreeing to
Asset Protection Strategies Can Have Significant Tax Consequences
Asset protection requires expertise in many different areas of law. One key area is litigation, since the ultimate test of any asset protection plan is how well it will hold up in court. Asset protection attorneys must also have expertise in business entities (particularly limited liability companies); trusts; and estate planning (since asset protection planning
Trust Protector Can Provide Added Flexibility For An Irrevocable Trust
A recent article in the New York Times by John F. Wasik provides an excellent discussion of trust protectors. Many states now allow for trust protectors – – someone other than the trustee who essentially provides some checks and balances in a trust arrangement.
A trust protector is a bit like a watchdog. He or
Considering an Offshore Trust? Then Consider the Cook Islands
Many foreign jurisdictions provide opportunities for offshore trusts. But if you are seriously considering such a trust, the Cook Islands deserve your attention.
Asset protection lawyers frequently debate the pros and cons, risks and possible rewards of offshore versus domestic asset protection trusts. And there are lots of potential asset protection strategies that do not