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
Asset Protection Strategies/Alternatives
Another Reminder about Year-End Gifts
As I noted in a post about a month ago we are facing potentially dramatic year-end changes to the federal estate and gift tax. The “exemption amount” could drop from $5 million to $1 million. In any event, it seems like the exemption will ultimately be less than it is now.
This means that for…
Spendthrift Trusts in Ohio
Ohio does not currently allow you to set up a Domestic Asset Protection Trust to protect your own assets. But you can set up a trust that protects assets that you leave to a beneficiary other than yourself. This kind of trust is commonly referred to as a “spendthrift trust”. Many trusts that are…
Umbrella Policy
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…
Control of Electronic Assets After Death
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…
Many Asset Protection Considerations Depend on State 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,
…
Retirement Plans and IRAs are Well-Protected from Creditors
This is the time of year when we are all focused on taxes. This includes our tax returns for 2011 and tax planning for 2012. So it is an appropriate time of year for a reminder about retirement plans and IRAs. We all seem to be aware of their tax advantages; but I constantly remind…
Asset Protection Planning Should Have a Multi-Generational Focus
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…
Asset Protection Planning is Often Possible After You Have Creditor Issues
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…
Planning Still Needed — Even if you Intend to Leave Nothing to the Kids
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)…