Asset protection and dynasty trusts 7
by Fox, Charles D IV, Huft, Michael J
Continued from page 6.
Because most states do not permit self-settled spendthrift trusts, a potential conflict-of-laws issue exists when a settlor from one of these states creates a self-settled spendthrift trust in a state that does authorize such trusts. A conflict of laws exists when the application of the laws of different jurisdictions would not result in the same resolution.148 When a settlor transfers assets into a self-settled spendthrift trust, and a creditor later seeks to reach those funds, two basic conflict-of-laws issues may arise. First is the question of which state's law should be applied to determine whether the asset transfer was fraudulent. Then, assuming the asset transfer...
[ Read Full Article Here ]