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January 11, 2012 Asset Protection
An Overview of Battley v. Mortensen: The End of Domestic Asset Protection Trusts?
Jennifer L. Moccia, JD, LL.M. Rack & Olansen, P.C. Member of WealthCounsel In early 2011, a landmark federal bankruptcy case shed doubt on the asset protection powers of the previously lauded domestic asset protection trust (DAPT), alarming many attorneys and distressing certain of those trust wielding clients. In a decision filed by the United States Bankruptcy Court for the District of Alaska on May 26, 2011, Judge MacDonald set aside Thomas Mortensen’s transfer of real property to an Alaska asset protection trust as a fraudulent conveyance. Battley v. Mortensen, Adv. D.Alaska, No. A09-90036-DMD (2011). This case deviated from previous DAPT holdings because, not only was Mortensen deemed solvent at the time of the transfer, but Alaska’s four-year statu... Read More
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December 1, 2011 Asset Protection
Carpe Diem (Seize the Day)
Kevin D. Quinn, J.D. Legacy Counsellors, P.C. Member of WealthCounsel U.S. taxpayers are experiencing a “perfect storm” of opportunity to make tax free wealth transfers. The gift tax was first enacted in 1932. Over the coming months, Americans have what may be the best opportunity since 1932 to transfer huge amounts of wealth without transfer tax. This is almost certainly a short term, “use it or lose it,” opportunity. Several key elements have transpired to create this perfect short term opportunity. A recent regulatory change allows for the transfer of up to $5 million per individual and $10 million per couple without Federal gift tax. Asset values, particularly for real estate, are still artificially depressed. Certain... Read More
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September 21, 2011 Asset Protection
What State Statutes are Important for Maximum Asset Protection of an LLC?
Cecil Smith, JD Apperson Crump PLC Member of WealthCounsel Carol Gonnella, JD Gonnella Adamason, PC Member of WealthCounsel When forum shopping to find the state that best suits your client who wants to form an LLC, we feel that there are six critical statutory provisions that should be analyzed in order for you and your client to make the important decision of which state you should form the LLC. You might want to check your own state law, or the law of some other state, but we have settled on five of the top jurisdictions for forming an LLC and have analyzed their statutes for you in the chart below. Click i... Read More
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August 24, 2011 Asset Protection
How Do Parents Keep Control: Irrevocable Trusts
Owen Kaye, Esq. Givner & Kaye Member of WealthCounsel Bruce Givner, Esq. Givner & Kaye Member of WealthCounsel Parents want to be in dictatorial control. However, trusts must be irrevocable for estate tax and asset protection planning purposes. Many people get turned off when the word “irrevocable” is raised. We must be able to assure them that they can “have their cake and eat it too.” Magic Formula. The goal of planning is to “own nothing and control everything.” The magic formula is “control.” “Own” looks and sounds like an English word, but it is not. It is a legally defined concept. By co... Read More
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August 10, 2011 Asset Protection
The Wyoming Domestic Asset Protection Trust
Cecil Smith, JD Apperson Crump PLC Member of WealthCounsel Carol Gonnella, JD Gonnella Adamason, PC Member of WealthCounsel A Golden Opportunity to Protect Your Assets The general rule under common law did not allow a self-settled trust to be protected from the maker’s creditors. Notwithstanding the common law rule, in 1996 Alaska enacted the nation’s first self-settled spendthrift trust, commonly referred to as a Domestic Asset Protection Trust (DAPT). Currently thirteen states, including Wyoming, have enacted DAPT legislation. The Wyoming statute provides an example of a well thought-out, comprehensive DAPT. The Wyom... Read More
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June 30, 2011 Asset Protection
Back to Basics with Alaska Domestic Asset Protection Trusts
Richard Foley Foley & Foley, PC Member of WealthCounsel Susan Foley Foley & Foley, PC Member of WealthCounsel [Ninth in a series of blog articles written by speakers at the 2011 Planning for the Generations Symposium.] Fourteen years ago domestic asset protection trusts (DAPTs) burst onto the national estate planning scene when Alaska became the first state to pass DAPT legislation. Asset protection trusts permit a grantor who is also a beneficiary to enjoy creditor protection for assets held by the trust. Delaware was among the first states to follow suit. Since then, a number of other state... Read More
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June 21, 2011 Asset Protection
Join Cecil & Carol in Chicago for Their Asset Protection Class
Cecil Smith, JD Apperson Crump PLC Member of WealthCounsel Carol Gonnella, JD Gonnella Adamason, PC Member of WealthCounsel [Sixth in a series of blog articles written by speakers at the 2011 Planning for the Generations Symposium.] At WealthCounsel’s upcoming 2011 Planning for the Generations Symposium, we will teach an Asset Protection class, Using LLCs to Protect Assets and to Serve as Private Trust Companies, the first afternoon, Wednesday, July 20 from 3:30 – 5 PM. We will share our combined 50+ years of experience, and our unique and creative asset protection strategies using Wyoming Limited Liability Companies, Wyoming Domestic Asset Pr... Read More
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April 7, 2011 Asset Protection
Worksheet to Analyze the Exposure of Your Assets to Seizure
Cecil Smith, JD Apperson Crump PLC Member of WealthCounsel Carol Gonnella, JD Gonnella Adamason, PC Member of WealthCounsel The Asset Protection Worksheet below is a practical and effective tool to motivate your estate planning clients to take the next step ... from living trust planning to asset protection planning. The idea is to complete this worksheet in front of your clients ... listing in Column A assets they own that are already protected by some federal or state law, then list in Column B assets not protected from lawsuits and creditors. Total each column, then with a bright red marking pen draw a big red X over the assets in the Column B and ask your clients "I... Read More