Indiana Enacts Self-Settled Asset Protection Trust Legislation

McGuire Woods reports that Indiana has enacted self settled asset protection trust legislation, becoming the 18th state to do so.

The McGuireWoods article begins as follows:

On April 9, 2019, the Indiana Legislature enacted S.B. 265 to amend the Indiana Code concerning trusts and fiduciaries. The Indiana governor signed the act May 5. One important provision of the act was the addition of a new Section 30-4-8 to the Indiana Code to permit the establishment of “Legacy Trusts,” which are a form of self-settled domestic asset protection trust (DAPT), and provide spendthrift creditor protection to the settlors of Legacy Trusts. As of the effective date of July 1, 2019, Indiana will become the 18th state to have DAPT-enabling legislation. The other 17 states are Alaska, Delaware, Hawaii, Michigan, Mississippi, Missouri, Nevada, New Hampshire, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming.

The Indiana Legacy Trust law is similar to the statutes of the other states that permit DAPTs. Either the owner of property or the holder of general power of appointment can transfer assets to a Legacy Trust. The transfer of assets to the Legacy Trust must be a “qualified disposition.” To be a qualified disposition, the Legacy Trust must be irrevocable; have a “qualified trustee” as one of the trustees; incorporate Indiana law to govern the validity, construction and administration of the Legacy Trust; and have a spendthrift clause.

See full article by clicking Indiana Enacts Self-Settled Asset Protection Trust Legislation

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..

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