Marty Shenkman has made available on his website his Leimberg article, authored by Jonathan Blattmachr, Matthew Blattmachr, Martin Shenkman & Alan Gassman on Toni 1 Trust v. Wacker – Reports of the Death of DAPTs for Non-DAPT Residents Is Exaggerated.
The executive summary is as follows:
All that the Supreme Court of Alaska held was that Alaska could not require that proceedings relating to the transfer of assets to an Alaska self- settled trust be before an Alaska court. It did not invalidate self-settled trusts created in that state. Although courts in other jurisdictions entered a default judgment on fraudulent transfer allegations, the viability of Alaska self-settled trusts to shield trust assets from the claims of the grantor’s creditors was not disturbed. Certain commentary seems to confuse that any transfer, whether to a self-settled trust or otherwise, that is fraudulent will be voided in every state in the union. But even if the grantor resides in a state that offers no protection from creditors for a self-settled trust, where the transfers to the trust are not fraudulent, self-settled trusts created Domestic Asset Protection Trusts (“DAPTs”) jurisdictions continue to offer benefits to many Americans.”
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.