Issue link: https://viewer.e-digitaledition.com/i/138456
++++++++++++++++++ +++ + +++ LEGAL-EASE+ ++++++++++++++++++ DOMESTIC ASSET PROTECTION TRUSTS Come to Ohio by Stephanie haight, esq. T HE DESIRE TO protect one's assets is both common and legitimate, and doing so has now become easier in Ohio. Asset protection has commonly been achieved through the formation of corporations and limited-liability companies, which limit personal liability. Ohio now joins states such as Delaware and Alaska in allowing individuals to protect their assets by creating domestic asset protection trusts. The Ohio Asset Management Modernization Act (AMMA) (effective March 27, 2013) includes the Ohio Legacy Trust Act, which allows special trusts to be created in Ohio to shelter assets from potential creditors. Similar to the asset protection laws in other states, an individual does not need to reside in the state of Ohio to take advantage of this new protection. Ohio asset protection trusts will be attractive planning tools for those who are at risk of claims that impact them individually. Assets can be transferred to a trust in which the owner can retain some interest and over which he or she may have limited control. For example, the person creating the trust can be a beneficiary of income and discretionary principal and can have the power to veto distributions. He or she cannot be the trustee, but can be an investment advisor. The trust must be irrevocable, but there are options for flexibility. In order to protect trust assets from the reach of creditors, however, one should be careful not to retain too much control over the trust, and any retained interests should be limited. While protecting assets from creditors still has its limits, the AMMA makes asset protection planning in Ohio more attractive than ever. NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice. Stephanie Haight is an attorney at Krugliak, Wilkins, Griffiths & Dougherty Co. LPA in Canton, OH. ■ We've worked with physicians for so long, we'll give you a sandwich if you have borborygmus. For more than 30 years, Weidrick Livesay & Company has been serving the business and accounting needs of physicians, from wealth management and retirement planning to prescribing corned beef on rye for those pesky stomach rumblings. 2150 N. Cleveland-Massillon Rd. • Akron, OH 44333 330.659.5985 www.wlcpa .co m JULY-AUGUST 2013 ■ MDNEWS.COM ■ MD News Cleveland/Akron/Canton | 11