Say ‘Aloha!’ to Hawaii’s New Asset Protection Law

1:48 pm Uncategorized

aloha e1309898787254 Say ‘Aloha!’ to Hawaii’s New Asset Protection LawAiming to compete with top-tier asset protection states like Nevada and Alaska, Hawaii has revamped its asset protection law to rid itself of the one percent excise tax the state was charging for asset transfers as well as the rule that previously limited Hawaiian asset protection trusts to 25 percent of a grantor’s net worth.

The new law went into effect on July 1, and while local asset protection attorneys agree it’s a step in the right direction, most admit that Hawaii’s asset protection law still cannot compete with those in Alaska, Delaware, Nevada or South Dakota, which offer more comprehensive protections.

Still, some Hawaii-based advisors say that they will not dissuade their clients from establishing a Hawaii asset protection trust – which is advice they could not have offered prior to the new law taking effect.

According to a post in The Trust Advisor blog: “Hawaii’s amended trust code now explicitly allows grantors to appoint outside advisors who can direct trustee investment decisions and veto distributions…An outside advisor can also remove and appoint trustees at will if the paperwork gives him or her that right.

“As a result, Hawaii is now in a much better position to compete against directed trust states like New Mexico, which don’t really play in the asset protection space anyway.”

For more information on domestic asset protection trust, contact our Newport Beach asset protection law firm.

Contact us today for individualized planning strategies to meet your unique needs.

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