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In 1998, despite arguments that the concept of an asset protection trust conflicted with US public policy, Alaska passed its own asset protection trust statute.  This was steadily followed by 15 additional states. These jurisdictions decided that asset protection IS good public policy; that it is legal and proper for individuals to take measures to protect their wealth from unknown future creditors and predators. Asset protection is a legal and worthy objective, provided “fraudulent transfer” is not pursued by a debtor acting with the intention to delay, hinder or defraud a known creditor.

Domestic asset protection trusts come with the benefits of lower maintenance costs, local trustees, reduced tax filings, fewer federal disclosure forms, and a reduced perception of impropriety.  However, several cases have moved through US courts to reveal the Achilles heel of domestic asset protection trusts which originates in Article IV, Section 1 of the US Constitution, which states:

“Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state.”

In other words, a judgment in one state must be honored by all other states. In stark contrast, Offshore Trusts are prohibited from recognizing foreign judgments. Results-oriented U.S. judges have broken domestic trusts several times.

Courts in one state will apply local law instead of the stated law of the trust, thereby neutering the domestic trust’s effectiveness.  A trust that is a steel box in one state can quickly become a wet paper bag in another.

Unfortunately, the short history of domestic asset protection trusts seems to indicate that they should not be relied upon because they have proven to be ineffective when seriously challenged by capricious and unpredictable US courts.

Learn about the concepts of a Trust, Irrevocability, Spendthrift Provisions and much more.

Pashmina Lalchandani

CEO & Co-Founder, Bar & Cocoa / Owner, Flow Simple
December 9, 2010, Douglass was a client of Pashmina’s

I’ve known Doug in many contexts, as a friend, as a client and as a business partner and he impresses me on all levels. He’s dependable, smart, generous and I wouldn’t hesitate recommending him and his law firm to anyone.
He’s the best and most ethical lawyers providing asset protection with rock solid strategies to give you peace of mind about your wealth. Straight forward, and straight talk. Doug is exactly the lawyer I want on my side. If I send someone to Doug, I know they’ll thank me for it!

Social & Solar Entrepreneur, Pan Afrikan Theorist, Translator/Interpreter,
Founder & Visionary Leader @ Afrikanpride.
March 12, 2011, Marlon E. D. J. worked with Douglass but at different companies

Doug is one of the most powerful thinker i have came across. During the short time that i have known Doug he has been a great source of inspiration. He has a simplistic yet effective and accurate way to analyze anything you bring to his attention, and then by asking you key questions he gets you to see the light at the end of the tunnel. Besides being extremely bright, he is a genuine and caring individual which is why I feel fortunate to know him. I can say without a doubt that he his the person you would want to talk to if you were in need of a person with his expertise.
Most of the lawyers out there will probably meet your needs, but if you are looking for someone to exceed your expectations and give you that wow factor, look no more he is the person for the job.

Patricia Salter

Associate Dentist at Smileology
December 1, 2010, Patricia was a client of Douglass’

I have been a client of Douglas Lodmell’s since 2001. My main concern was asset protection in this litigious society. I can sleep alot better at night knowing I have the instruments in place to protect the fruits of my labor, and that they will not end up in the hands of a slick trial attorney.

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