Wednesday, July 16, 2014
Mississippi recently enacted legislation that now allows self-settled asset protection trusts. The Mississippi Qualified Disposition in Trust Act permits the grantors to be trust beneficiaries in some situations. Here are some of the requirements to create such a trust under the new law and receive the creditor protection that comes with it:
- The trust must be irrevocable
- The settler is limited in the types of interest they may retain
- A “qualified affidavit” must be signed by the settler
- A liability insurance policy must be created for the trust
See Daniel G. Worthington & Mark Merric, Mississippi Enacts Self-Settled Asset Protection Trust Legislation, Wealth Management, July 15, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.