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
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
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
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
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
Ohio Legacy Trust Allows Settlors to Retain Many Powers
The Ohio Management Modernization Act, which became effective on March 27, 2013, now allows Ohioans to put assets in a trust (of which they are a beneficiary) and protect those assets from creditors. This newly permitted trust is called an Ohio Legacy Trust.
An Ohio Legacy Trust must be irrevocable and the settlor (the person
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