Leading Asset Protection Lawyer Christopher T. Casey Reveals The Risks Of Self-Settled Trusts – Salem, MA

Salem, Massachusetts, United States – May 30, 2022 —

Attorney Christopher T. Casey has outlined how self-settled asset protection trusts often expose people’s assets. 

For more information please visit https://www.caseylundreganlaw.com

When asked to comment, Casey, a partner of Casey & Lundregan, P.C, of Salem, MA, commented: “While putting self-settled trusts in place of more conventional asset protection plans is trendy these days, there are serious setbacks that could do more harm than good.”

He added, “The most appealing aspect of a self-settled trust is that the grantor and beneficiary are the same person. These are spendthrift trusts that the grantor forms for his or her own benefit.

This is done in an attempt to protect trust assets from creditors. But it doesn’t work for past creditors, for all assets, in every state, or all circumstances. And most U.S. states don’t recognize self-settled trusts at all.”

Many people open foreign asset protection trusts under the false assumption that moving their assets overseas will help shield them from creditors. He said: “While it’s true that judges in U.S. courts do not have jurisdiction over assets tucked away in foreign asset protection trusts, there are ways the courts can still dole out punishment for any perceived wrongdoing.”

When asked for an example, Casey explained: “For instance, if the IRS has deemed you owe taxes and the court can prove you have enough money placed in a foreign trust to cover your tax liability, then you might be penalized for not repatriating the money and paying the IRS.” 

A judge can order that someone move their funds from a foreign trust back into the country.

Domestic asset protection trusts – one type of common self-settled trust – are not recognized in every state, making people legally and financially vulnerable. 

“States often differ in their regulations surrounding domestic asset protection trusts. If a state doesn’t legally recognize this type of trust, any assets put in that type of trust are not protected from debt collectors,” he said.

While some states recognize domestic trusts as part of their legislation, Casey said that asset protection is still not guaranteed, particularly when it comes to bankruptcy. “Creditors have and can submit an involuntary bankruptcy petition to the courts that are located in states that legally recognize domestic asset protection trusts. This has the potential to place your assets at risk,” he said.

“Although self-settled trusts might seem appealing to many, the risk is that their assets will be exposed, he advised. “Contact an experienced asset protection attorney to learn more about non-self-settled trusts.” 

Contact Info:
Name: Christopher T. Casey
Email: Send Email
Organization: Casey & Lundregan, P.C.
Address: 71 Washington Street, Salem, MA 01970
Phone: 978-741-3888
Website: https://www.caseylundreganlaw.com

Release ID: 89075812

If you detect any issues, problems, or errors in this press release content, kindly contact error@releasecontact.com to notify us. We will respond and rectify the situation in the next 8 hours.