Effective March 27, 2013, Ohio joined the growing list of states that have enacted asset protection trust legislation. This article provides a review and critique of the asset protection aspects of the Ohio Legacy Trust Act (Act).
Years ago asset protection planning was an infrequently discussed topic between CPAs and their clients. Today, however, the topic often arises. Therefore, CPAs must have a basic knowledge of the strategies and techniques available to their clients to be able to intelligently respond to client inquiries.
Amendment 8 prohibits a physician who has been “found to have committed three or more incidents of medical malpractice from being licensed to practice medicine in Florida” (emphasis supplied). How do you protect yourself from that Draconian rule? You implement a comprehensive asset protection strategy.
On July 10, 2003, Alaska amended its 1997 Alaska Trust Act (the “2003 Bill”) in an effort to stay in the forefront of the growing list of states seeking to generate trust business by providing settlors with creditor protection and estate freeze legislation. This type of legislation attempts to rival that offered by certain offshore jurisdictions. The 2003 Bill makes Alaska more attractive as an domestic asset protection situs. As a state in the United States, however, Alaska falls short of providing the ultimate protection offered by certain offshore jurisdictions – lack of U.S. court power to upset asset protection planning.
On March 22, 2003, Utah joined the growing list of states which have enacted asset protection trust legislation. This article provides a review and critique of those provisions of the Utah legislation which pertain to asset protection. Trusts which are subject to the new legislation will be referred to herein as “Utah trusts”.
In a properly structured asset protection plan, you don’t have to lose control. A typical asset protection plan that effectively guards your personal assets works like this:
With jury awards ever-increasing and malpractice coverage dwindling in many states, many physicians are anxious about credit protection. Moreover, malpractice lawsuits are not the only threat to your wealth.
Because the US court system often is unpredictable, the key to truly effective asset protection is to remove the ability to reach the assets. If an offshore trust has been properly structured and implemented, and is holding cash and marketable securities offshore, it will be impossible for any creditor to reach those assets.
In response to the deficiencies in domestic trust law, and seeking to obtain potential benefits from estate freeze structures, certain State legislatures have introduced “protective” features in their trust legislation.