Civil contempt incarceration in the context of asset protection planning has been the subject of a tremendous amount of commentary. Some writers seem to have “an axe to grind” in this regard, as they present half-truths and innuendos as if they were the law.
Individuals should proceed with caution and utilize experienced counsel when titling new assets or transferring title to existing assets. This issue of the APN is the first of two parts addressing the most frequent failings of individuals attempting to implement do-it-yourself asset protection by titling/retitling assets.
A group trust is a trust settled (created) by four or more individuals (for this purpose, a married couple counts as one individual). This technique was developed by Donlevy-Rosen & Rosen, P.A. in 2004 in response to a common problem faced by clients: often a client expressed concern not only about his/her own financial well-being, but also about others participating with the client in a business venture or other common pursuit.
An entity trust is a trust settled (created) by an entity, such as a corporation, limited liability company, trust, or partnership. An entity trust might also be settled by an appropriate group of entities, such as a related or commonly owned group of corporations, limited liability companies, trusts, or partnerships.
On April 20, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was enacted into law. The stated purpose of the Act is to “improve bankruptcy law and practice by restoring personal responsibility and integrity in the bankruptcy system and ensure that the system is fair for both debtors and creditors.”
On April 4, 2005, the United States Supreme Court handed down its decision in Rousey v. Jacoway, a case addressing the issue of exempting individual retirement accounts (IRAs) from federal bankruptcy proceedings. The decision was widely hailed in the financial press, with such headlines as “High Court Rules IRAs Untouchable – Unanimous Decision Means Retirement Savings Are Protected From Creditors”.
In this issue we will examine the importance of proper design of the asset protection trust, and, integrally related to proper trust design, the importance of competent, experienced counsel. We’re sure you have all heard the expression, “bad facts make bad law”.
Many seminars and articles of late have introduced the concept of domestic asset protection trusts (APT’s). This is primarily a result of the 1997 enactment of “protective” trust legislation by Alaska and Delaware. In this issue we will examine how effective these domestic asset protection trust laws are in protecting assets.