Menu ${}${SEMFirmNameAlt}${}${SEMFirmNameAlt}
Practice Areas
Let's Get Started!

Trusts: flexible form finds application to domestic assets

Trusts are very flexible instruments. There are many different types of trusts and they can be used for many different purposes. And so the flexibility they provide is one of the recurring themes of this blog.

One of the latest ways in which this flexibility is evident is in the increasing use of domestic asset protection trusts in some states. Until fairly recently, this type of trust was little know and very few states permitted its use.

Now, however, 15 states allow owners to protect securities or other assets from creditors through domestic asset protection trusts.

One reason for the increased use of domestic asset protection trusts is that offshore bank accounts have become much less desirable as a way to shelter money from creditors. The Internal Revenue Service has been cracking down for several years on taxpayers with foreign bank accounts, and the penalties for violations of the reporting rules can be substantial.

It is not difficult to identify some basic scenarios in which a family may want to protect assets from creditors. For example, if the family owns a business, there may be concern that if a lawsuit occurs, it could lead to significant personal liability.

There are other situations where asset protection is important as well. For someone who works as a doctor or a nurse, there may be concerns about a medical malpractice lawsuit that threatens family assets.

Similarly, divorce litigation can really chew up someone's assets if the case becomes highly contentious.

In any case, it is clear that more clients are considering domestic asset protection trusts. 

Source: The Wall Street Journal, "Creditor-Proof Trusts Replacing Offshore Accounts," Arden Dale, August 8, 2013

Serving businesses and individuals throughout Massachusetts

Braintree Office
25 Braintree Hill Office Park
Suite 406
Braintree, MA 02184

Toll Free: 888-759-5109
Fax: 617-523-5653
Braintree Law Office Map

Cranston Office
200 Midway Road
Suite 159
Cranston, RI 02920

Toll Free: 888-759-5109
Cranston Law Office Map

Hyannis Office
1330 Phinney’s Lane
Hyannis, MA 02601

Toll Free: 888-759-5109
Hyannis Law Office Map

Norwood Office
520 Providence Highway
Suite 10
Norwood, MA 02062

Toll Free: 888-759-5109
Norwood Law Office Map

Waltham Office
375 Totten Pond Road
Suite 200
Waltham, MA 02451

Toll Free: 888-759-5109
Waltham Law Office Map

Westborough Office
276 Turnpike Road
Suite 228
Westborough, MA 01581

Toll Free: 888-759-5109
Westborough Law Office Map

Woburn Office
444 Washington Street
Suite 203
Woburn, MA 01801

Toll Free: 888-759-5109
Woburn Law Office Map

Longmeadow Office
Williams Place
813 Williams Street
Longmeadow, MA 01106

Toll Free: 888-759-5109
Map & Directions