Michigan Asset Protection
Kalamazoo Estate Planning Attorneys – (888) 461-7744
On March 8th, 2017, the Qualified Dispositions in Trust Act became law in Michigan. Heralded as Michigan’s effort to move its estate planning and trust laws to the front of the country, the law affords an individual the ability to protect assets from his or her own creditors through a specialized, irrevocable, and self-titled living trust. An Asset Protection Trust (APT) takes control of assets out of the grantor’s hands, and thus, out of range of his or her own personal creditors.
Using Michigan asset protection options and creating an effective APT can be a complicated process. Let Willis Law and our trust attorneys in Grand Rapids be your legal guides. Our legal team has received and achieved numerous noteworthy recognitions, including selection to Best Lawyers in America®, Super Lawyers® and an AV Preeminent® Rating by Martindale-Hubbell®.
Call (888) 461-7744 or email us for more information about Michigan asset protection.
Qualifications & Details About Asset Protection Trusts
Not just any individual can use an asset protection trust in Michigan to shield certain assets from creditors that would collect them in the event of bankruptcy or other defaults. For a trust to qualify in Michigan for this specialized purpose, it must incorporate Michigan law, include a Michigan-approved trustee, and be filed along with an affidavit that explicitly states that no attempts to defraud creditors are being made by the grantor. Additionally, the creator of the trust may not be the trustee, but is permitted to direct investments, receive income through the trust, and use veto powers against distributions.
An APT could be formed as a:
- Charitable Remainder Trust
- Discretionary Trust
- Grantor Retained Annuity Trust
- Qualified Personal Resident Trust
- Support, Health, Maintenance, or Education Trust
Any trust that qualifies to be considered an APT will essentially block any creditor actions against the assets contained within. Creditors that wish to claim assets of an APT will need to prove that there was real and intentional action taken to commit fraud by sealing the assets.
Combining Estate Planning Techniques to Your Benefit
An Asset Protection Trust can be incredibly useful to hold onto your assets when it is paired with other estate planning tools. Our Kalamazoo estate planning lawyers recommend APT use for professionals that may be at high risk of liability due to the nature of their work, such as physicians, accountants, financial advisers, corporate officers, and business owners. Keep in mind that an APT is irrevocable and inflexible, so any transferred assets will be surrendered without the chance of future control.
Learn more about Michigan asset protection by contacting our law firm
There may be an APT option that works for you!