74th Annual Montana Tax Institute

Over the past 28 years, 20 states have enacted asset protection trust statutes. As a result, creditor protection has become mainstream. Not only statutory asset protection trusts, but also other types of creditor protection trusts, such as special power of appointment trusts, hybrid-DAPTs and SLATs, have grown dramatically in popularity in recent
years. Many clients choose to make transfers to these trusts completed gifts for federal estate tax purposes so that the transferred assets, and the growth and income on those transferred assets, will be excluded from their estates for federal estate tax purposes at death. This session will look at the requirements – and the potential challenges – associated with making a completed gift to various forms of creditor protection trusts.