Ronald J. Cappuccio, J.D., LL.M. (Tax)

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New Bankruptcy Law Defeats Asset Protection Trusts

| Oct 23, 2005 | Uncategorized

One issue with domestic asset protection trusts is that the Section 548(e) of the Bankruptcy Act of 2005 specifically allows a bankruptcy trustee to avoid transfers within 10 years of the transfer to the trust,”or other similar device”such as Family Limited Partnerships and LLC, for existing or new creditors within the 10 yearperiod. This may effectively defeat many “Asset Protection Trusts” and may promote the use of offshore trusts.

see: http://www.TaxEsq.com

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