In December of last year, the Michigan legislature adopted a new statute which will significantly change the options available to people when completing their estate plans. The statute is Public Act No. 330 of 2016, and it went into effect on March 8, 2017.
With the passage of this law, Michigan has joined Alaska, Delaware and numerous other states in allowing their residents to protect their assets from creditors and still maintain control over those assets for their own benefit.
For a long time, Michigan had been among the states that did not permit individuals to protect their assets from creditors using a trust. This new statute completely reverses that position and will now permit the use of the so-called “Asset Protection Trust” to shield assets from the reach of one’s creditors.
Michigan residents will no longer have to go to out-of-state attorneys and establish these trusts under foreign laws. Michigan assets can remain in Michigan and be subject to Michigan laws.
There are certain qualifications that must be met before the trust can qualify as an “asset protection trust”, not the least of which is that it must be irrevocable and cannot be amended by the transferor/settlor.
These trusts are especially suited to anyone who may become liable for a significant debt or claim, such as officers and directors of banks, general partners in real estate deals, and professionals subject to malpractice claims. But any individual who has accumulated substantial wealth, owns a business, or is high profile can benefit from establishing the asset protection trust.
In addition, an asset protection trust could be used in conjunction with a traditional prenuptial agreement to protect assets from a divorcing spouse.
If you would like more information about the Asset Protection Trust, please contact Seglund Gabe Pawlak Groth & Kelley, PLC and ask for Bruce R. Seglund.
Michigan Legal Solutions
Our experienced attorneys are committed to providing our clients with the guidance and support that they need to resolve their estate planning issues. With over five decades of serving clients in Southeastern Michigan, the attorneys of Michigan Legal Solutions (Seglund Gabe Pawlak Groth & Kelley, PLC) have the knowledge and resources to resolve your issues.
No two families are alike and our attorneys are qualified to handle every type of estate planning situation, no matter how confusing or complex it may seem. We stay up to date on state and federal laws concerning estate planning and the latest laws regarding Medicare changes, Medicaid changes or nursing home issues. Our attorneys will provide you with the guidance you need and the service you expect so that you and your family get the result you want and the protection that you deserve.
Michigan Legal Solutions
28345 Beck Road, Suite 401
Wixom, MI 48393
Phone: (248) 869-0030
Fax: (248) 869-0039