Are spendthrift trusts valid in all states?

Spendthrift trusts are valid in both California and Indiana.

What is a self-settled spendthrift trust?

A spendthrift trust is considered to be “self-settled” when the trust creator and beneficiary are the same person. There also can be no other beneficiaries of the trust. However, there is still a trustee involved that manages and distributes the funds.

What states allow self-settled asset protection trusts?

The states that currently allow some form of self-settled asset protection trusts include:

• Alaska.
• Delaware.
• Hawaii.
• Mississippi.
• Missouri.
• Nevada.
• New Hampshire.
• Ohio.

What states have spendthrift trust?

Seventeen states now allow for self-settled Domestic Asset Protection Trusts (“DAPTs”). Those states are Alaska, Delaware, Hawaii, Michigan, Mississippi, Missouri, Nevada, New Hampshire, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming.

Which is the first state to allow self settled spendthrift trusts?

Alaska was the first state to allow self-settled spendthrift trusts, which is why they are sometimes referred to as Alaska trusts. However, under Alaska law there is a four-year period after the trust is created before the trust funds receive protection from creditors.

Can a spendthrift trust be established in Nevada?

Nevada has enacted a series of statutes, codified at Chapter 166 of the Nevada Revised Statutes, that specifically enable the creation of self-settled spendthrift trusts. This form of trust is commonly referred to as a “Nevada Asset Protection Trust”.

Are there any states that allow self settled asset protection trusts?

The states that currently allow some form of self-settled asset protection trusts include: Alaska. Delaware. Hawaii. Mississippi. Missouri. Nevada. New Hampshire.

Can a settlor be a beneficiary of a spendthrift trust?

Nonetheless, at common law, settlors naming themselves as beneficiaries of a spendthrift trust do not enjoy the above creditor protections — such self-settled first-party spendthrift trusts were not recognized by courts as valid devices against a settlor’s creditors.