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During 2016, Ohio continued to stand out as one of the best asset protection jurisdictions in the country.  I have noticed that more people are becoming aware of the significant opportunities offered by Ohio’s Legacy Trust statute.  As I have mentioned in earlier posts, an Ohio Legacy Trust is an excellent way to protect your assets – – while still maintaining a meaningful degree of control over those assets.…
Ohio amended its limited liability company statute earlier this year.  As I explained in prior posts on June 16 and July 15, 2016, the amendments strengthened the asset protection provisions of the statute. One of the most important changes was the addition of Ohio Revised Code §1705.031.  This section specifically provides that Ohio’s limited liability company statute applies to all LLCs formed in Ohio – – whether the LLC has one member or more…
As I previously noted in a post back in 2013, you can establish an Ohio Legacy Trust without giving up complete control of your assets.  Your Trust must be irrevocable and you cannot serve as your own Trustee.  But you can still maintain significant control over the assets in the Trust if you want to do so. Ohio Revised Code §5816.05 specifically states that the Settlor (the person establishing the Trust) can reserve quite…
A recent article in The New York Times provides a good reminder that some states are much better than others with respect to asset protection. The article by Patricia Cohen is titled “States Vie to Shield the Wealth of the 1 Percent”.  By authorizing certain kinds of trusts and providing other ways to shelter assets, a state can more easily attract lucrative trust business.  States can also enact LLC statutes and other laws that…
On July 26, 2016, the United States Court of Appeals for the Seventh Circuit broadly affirmed a Wisconsin statute that makes annuities exempt from a creditor’s judgment.  The case – – Whitman, Trustee in Bankruptcy v. Koenig, 2016 WL 3997251 – – was argued earlier this year and the Appeals Court issued its decision on July 26. Wisconsin Stat. §815.18(3)(j) 2.a exempts a debtor’s annuity contract that “complies with the provisions of the Internal Revenue…
As I have mentioned in other posts, Ohio Senate Bill 181 was signed by the Governor and became law on July 6, 2016.  The new statute improves the already excellent protections offered by Ohio’s LLC statute.  It amends various provisions of Chapters 1701 and 1705 of the Ohio Revised Code. It is worth noting that this statute passed the Ohio Senate on October 14, 2015 by a vote of 32-0.  The vote in the Ohio…
As I noted in a recent post, significant changes to Ohio’s LLC statute (contained in Senate Bill 181) became effective on July 6.  Among these changes are provisions making it harder to impose personal liability on members, managers or officers for the debts of the company. The new law specifically states that the failure of an LLC to observe formalities relating to the LLC’s management is not a ground for imposing personal liability on a…
Can you set up a trust in a state that you do not reside in?  The answer is yes.  You can set up a trust in a country you do not live in.  As a resident of Ohio, I can establish a trust in Delaware or Alaska or the Cook Islands or almost anywhere else.  There are of course a number of factors to consider in deciding whether or not that makes sense.  And when…
Ohio Senate Bill 181– which becomes effective on July 6, 2016 — will make some important asset protection improvements to Ohio’s limited liability company statute. Ohio’s LLC law is already an excellent one from an asset protection standpoint. The new changes will make it even better. The new changes include: More specific charging order protection for single member LLCs Reducing the risk of “piercing” the protections offered by the LLC statute by requiring fewer formalities…
A recent article by Laura Landro in the May 10, 2016 Wall Street Journal had some interesting observations about the burdens many physicians face from malpractice suits. According to a 2013 study in the Journal of Health Affairs, the average doctor spends over 50 months — or about 11% of a 40 year career — with an unresolved, open malpractice case. While a majority of cases do not even result in payments to the plaintiff…