Michigan Asset Protection Lawyer Blog

A Private Letter Ruling (PLR 200944002) issued by the Internal Revenue Service states that under the facts and circumstances discussed in the ruling the property of a self-settled domestic asset protection trust is not included in the Grantor's estate even though he is a discretionary trust beneficiary. Many commentators were surprised that Grantor could retain this right and keep the property of the trust out of his estate. This ruling opens the door for Michigan residents to utilize the trust laws of a state such as Delaware in order to create a trust in which they are discretionary beneficiaries yet the property of the trust is both protected from creditors and not included in their gross estates for estate tax purposes.

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Inevitably, in connection with developing an appropriate strategy for a client who is seeking asset protection planning, the issue of fraudulent transfers is front and center. An experienced Michigan asset protection planning practitioner will be able to quickly identify that certain proposed transfers will indeed violate the Michigan Uniform Fraudulent Transfer Act ("UFTA").

Continue reading "Asset Protection, Fraudulent Transfers and Bankruptcy" »

My April 20, 2010 blog discusses how the IRS avoids being subject to the charging order remedy when seeking to collect from an LLC in which the debtor taxpayer is a member. Unfortunately, the IRS has still another offensive weapon when chasing members of LLC's for money.

Continue reading "Another Circumvention of the Charging Order Remedy" »