Domestic Asset Protection Trusts, available only in a small number of states, are a formidable planning strategy that legally shields assets from third party liability (including spouses in a divorce proceeding) and law suits while permitting settlors (the person establishing the trust) to retain some control over the trust assets and enjoy a discretionary benefit during their lifetime. South Dakota has one of the oldest and most progressive self-settled domestic asset protection provisions in the United States. With its two year “look back” fraudulent conveyance statute, South Dakota’s is among the shortest in the country (Delaware has a four year fraudulent conveyance statute).
In the January 2017 issue of Trusts & Estates Magazine, authors Mark Merric and Daniel G. Worthington closely and objectively examine domestic asset protection trust statutes in the context of various factors including a state’s discretionary support statute and alter-ego statute. Read more