Legislative and Judicial Developments

[...]unlike a number of predecessor DAPT statutes, the Indiana DAPT statute doesn't include existing tort claimants as an exception creditor. QTIPs Another approach available for a married individual who resides in one of the 10 non-DAPT states that have enacted inter vivos qualified terminable...

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Bibliographic Details
Published in:Trusts & Estates 2020-01, p.10
Main Authors: Rothschild, Gideon, Rubin, Daniel S
Format: Article
Language:English
Subjects:
Bankruptcy
Beneficiaries
Charitable foundations
Child support
Creditors
Jurisdiction
Nonresidents
Public policy
Qualified Terminable Interest Property
State court decisions
State laws
Trusts
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Summary:[...]unlike a number of predecessor DAPT statutes, the Indiana DAPT statute doesn't include existing tort claimants as an exception creditor. QTIPs Another approach available for a married individual who resides in one of the 10 non-DAPT states that have enacted inter vivos qualified terminable interest property trust (QTIP) statutes 7 is to settle a marital trust for the lifetime benefit of the spouse because these statutes provide that if the spouse predeceases the grantor, the trust that would then continue for the benefit of the grantor isn't to be considered as “self-settled” for asset protection purposes and would enjoy the same substantial creditor protection of any other spendthrift trust. [...]some of such states don't even require that the trust be a QTIP trust. 8 Private Non-Charitable Foundation In other legislative developments, Wyoming became the second state in the United States to enact a private non-charitable foundation statute, 9 following in the legislative steps of New Hampshire, which enacted such a statute in 2017. Originally a California trust settled by the debtor's father for her benefit, the trust migrated to South Dakota following an order by the California courts for the trustee to make child support payments. Because the California judgment was based on an enforcement provision, the court held that the child support order needn't be given full faith and credit in South Dakota.
ISSN:0041-3682