Forbes Grades Best States for Domestic Asset Protection Trusts

3:54 pm Uncategorized

Forbes has graded each of the 12 U.S. states that provide Domestic Asset Protections Trusts, awarding anywhere from an A+ for the best protection to a D for poor protection.

Here are the ratings:

New Hampshire:  B-. The newest state to enact DAPT legislation, New Hampshire gets graded down for not protecting the trust from pre-existing tort claims, a divorcing spouse, alimony or child support obligations.  The assets also have to be in the trust for a minimum of four years before protection kicks in.

Tennessee: B.  Offers only partial protection like N.H., except it does protect assets from pre-existing tort claims.

Wyoming: C. Partial protection, and if trust assets are used on a credit application, they can be seized to collect the debt.

South Dakota: A-. Your assets must be in the trust for only three years before the statute of limitations expires.  Still, no protection from pre-existing tort claims, a divorcing spouse, alimony or child support.

Missouri: C. This state’s trust laws left some basic issues unaddressed.

Oklahoma: C-. Can only protect up to $1 million in assets.

Utah: C. More exceptions to what is protected than other states.

Nevada: A+. The most debtor-friendly state requires your assets to be in the trust for only two years before the statute of limitations expires, it includes protection from pre-existing tort claims, a divorcing spouse, alimony and child support.

Rhode Island: B.  Same provisos as New Hampshire.

Delaware: A-. Assets must be in the trust for four years before the statute of limitations expires.

Alaska: A. The first state with a DAPT law, Alaska does protect assets from pre-existing tort claims.

Colorado: D. Has the oldest asset protection law on the books, but many lawyers disagree over whether it really protects assets since it is so ambiguous.

If you have assets to protect and are interested in learning more about a Domestic Asset Protection Trust, contact our California asset protection law firm.

Contact us today and let our Newport Beach law firm help you with all your financial planning needs.

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