It has been a little more than two years since Ohio became one of the top asset protection jurisdictions in the United States. Many people — including many attorneys–are still not fully aware of this dramatic development. But word is slowly getting out. We are getting more and more inquiries about Ohio’s Legacy Trust Statute
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 …
Second Annual Ohio Asset Protection and Legacy Trust Institute
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
- 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).
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…