In recent years, many states have begun to allow self-settled spendthrift trusts.
These new trusts allow the settlor to obtain the benefits of offshore asset protection trusts without the complexity, cost, and byzantine application of foreign law. A settlor can shield assets from his or her creditors or tort claimants, remove those assets from his or her gross estate, and obtain other tax and non-tax benefits.Though more accessible than offshore trusts, domestic asset protection trusts still come with risk.
This program provides a practical guide to using self-settled spendthrift trusts and drafting their instruments.
- What are domestic asset protection trusts?
- When are they best used and what are the risks?
- What states allow these trusts and subject to what limits?
- How do domestic trusts and offshore trust compare?
- What are the tax benefits and risks of thee trusts?