By Steven J. Oshins, Esq., AEP (Distinguished) There is a misconception that using a corporate trustee, such as a bank or trust company, is difficult and costly. However, this couldn’t be further from the truth. This misconception causes roughly 99% of estate planners to avoid using other states’ more favorable trust laws which therefore harms their clients and the families of their clients. There are only a handful of first-tier trust jurisdictions. Trusts sitused in these jurisdictions can often avoid state income taxes on undistributed taxable income and are often better protected from creditors of the beneficiaries, including divorcing spouses….
The Strange Case of Dr. Jekyll and Mr. Oshins: DAPTs vs. Hybrid DAPTs
By Steven J. Oshins, Esq., AEP (Distinguished) Testing his theory that in every man dwells a good and an evil force, the reserved Dr. Jekyll develops a formula that separates the two, turning him into an argumentative estate planning attorney named Mr. Oshins who tells it like it is. Dr. Jekyll soon realizes he is becoming addicted to his darker self as he unleashes his opinions on the estate planning industry. In this article, Dr. Jekyll and Mr. Oshins tackle the issue of whether a resident of a state that has no Domestic Asset Protection Trust (“DAPT”) statute should use…
The Strange Case of Dr. Jekyll and Mr. Oshins: Nevada vs. Delaware Dynasty Trusts
By Steven J. Oshins, Esq., AEP (Distinguished) Testing his theory that in every man dwells a good and an evil force, the reserved Dr. Jekyll develops a formula that separates the two, turning him into an argumentative estate planning attorney named Mr. Oshins who tells it like it is. Dr. Jekyll soon realizes he is becoming addicted to his darker self as he unleashes his opinions on the estate planning industry. In this article, Dr. Jekyll tackles the issue of which trust jurisdiction is superior for Dynasty Trusts, Nevada or Delaware. As expected, Mr. Oshins will provide a different view…
What Trust Jurisdictions Other than Alaska, Delaware, Nevada and South Dakota Are Best?
By Steven J. Oshins, Esq., AEP (Distinguished) Some of these jurisdictions are up-and-comers and others are underrated. This article focuses on the “Other Four States”. Most practitioners focus on Alaska, Delaware, Nevada and South Dakota as the Big Four States when it comes to selecting a trust situs. These four states collectively receive a substantial amount of the out-of-state trust business, in part because of their spectacular laws and in part because of their longevity as trust heavyweights. However, there are other states that are more than respectable and worthy of praise. And in many aspects they are competitive with…
2019 ABA Heckerling Reports from 53rd Annual Heckerling Institute
For the past 22 years, the American Bar Association Section of Real Property, Trust and Estate Law with the permission of the University of Miami School of Law, releases several extensive reports highlighting the various lectures and proceedings of the Heckerling Institute, one of the nation’s largest estate planning conferences, held every year in January. This week in Orlando, Florida, the 53rd Annual Heckerling Institute on Estate Planning took place. To view, download and access these extensive reports (which are still being updated and added), see below. Further, at the above website, you can also access reports from prior Heckerling…
CHECKLIST: 2017 Tax Act & Recent Developments
By Martin M. Shenkman, CPA, MBA, PFS, AEP (Distinguished), J.D. Summary: The 2017 Tax Cut and Jobs Act has changed almost every aspect of planning. Consider the following. √ Sec. 199A: The 20% QBI deduction applies for 2018 – 2025. Consider the sunset of this tax bennie when evaluating the cost of planning to enhance whatever benefits you can get. Example: Before restructuring a business, will the payback over the years remaining be worth the cost? √ Charity: The new doubled standard deduction may eliminate any tax benefit from donations. Consider setting up a non-grantor trust to salvage that deduction. Example: You create an irrevocable…
Dynasty Trust Situs Battle Royale
By Steven J. Oshins, Esq., AEP (Distinguished) A “Dynasty Trust” is an irrevocable trust that continues for as long as the applicable state law allows. For as long as it continues, the trust assets can be protected from estate taxes and, depending upon the choice of situs and how the trust is drafted, can also be protected from divorcing spouses and other creditors. The jurisdictional competition for Dynasty Trust supremacy is alive and well. In this cut-throat industry where billions of dollars are being passed through Dynasty Trusts, the stage is now set for the Dynasty Trust Situs Battle Royale….
The LeBron of Asset Protection Trusts
By Steven J. Oshins, Esq., AEP (Distinguished) What does LeBron Symbolize? LeBron James is the greatest current basketball player on the planet. In fact, he is arguably the greatest of all time. [If this article were written 20 or 30 years ago, it would have been called, “The Michael of Asset Protection Planning Trusts” to recognize Michael Jordan’s similar greatness.] LeBron symbolizes greatness. In the asset protection industry, there are a number of different techniques, but only one technique can be the greatest. That technique is simply the LeBron of asset protection techniques. The Different Asset Protection Options There are…
Identifying an Asset Protection Trust Candidate
By Steven J. Oshins, Esq., AEP (Distinguished) If I had a Nickel for Every Time… If I had a nickel for every time an estate planning advisor called or emailed me with a prospective client that they deem to be an absolutely perfect asset protection trust candidate “because they’re in a lot of trouble”, I would be a rich man! This is How the Conversation Often Goes Bernie the Attorney: Hi, Steve. I have the perfect referral for you for an asset protection trust. Steve Oshins: Great! Tell me a little about the referral. Bernie the Attorney: Well, my client…
Toni 1 Trust v. Wacker: A Rare Domestic Asset Protection Trust Case
By Steven J. Oshins, Esq., AEP (Distinguished) To this date, there still isn’t even one DAPT case where a creditor reached into the trust and grabbed assets in a non-bankruptcy, non-fraudulent conveyance scenario. Let me repeat this: To this date, there still isn’t even one DAPT case where a creditor reached into the trust and grabbed assets in a non-bankruptcy, non-fraudulent conveyance scenario. Toni 1 Trust v. Wacker A new court decision in the Supreme Court of Alaska was issued on March 2nd. A handful of asset protection planners who promote foreign asset protection trusts wrote articles and blogs about…