Abstract

http://ssrn.com/abstract=1638997
 


 



The Estate and Gift Tax Implications of Self-Settled Domestic Asset Protection Trusts: Can You Really Have Your Cake and Eat it Too?


Phyllis Taite (Smith)


Florida A&M University College of Law

July 12, 2010

New England Law Review, Vol. 44, No. 1, 2009

Abstract:     
Abstract: Self-settled asset protection trusts are wealth preservation trusts coupled with the spendthrift provisions. This type of trust permits the settler to have the benefit of treating the trust as a separate entity thereby protecting his assets from creditors while maintaining a pecuniary interest, as well as some level of control over what ultimately happens to the trust property. By providing asset protection from potential creditors while still having the ability to maintain a beneficial interest in the trust, the settler can essentially “have his cake and eat it too.” The typical domestic self-settled asset protection trust may not be treated as an asset of the settler for creditor claims. Whether these assets should be treated as owned by the settler for the purpose of inclusion in the gross estate of the decedent for estate tax purposes is the focus of this Article. The author asserts that it is appropriate to include certain property settled in a domestic asset protection trust (“DAPT”) in the settler gross estate for estate tax purposes because of the control the settler retains over the trust assets up until his death.

Number of Pages in PDF File: 37

Keywords: estate tax, estate, gift tax, taxation, asset protection trusts, domestic asset protection trust

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Date posted: July 12, 2010  

Suggested Citation

Taite (Smith), Phyllis, The Estate and Gift Tax Implications of Self-Settled Domestic Asset Protection Trusts: Can You Really Have Your Cake and Eat it Too? (July 12, 2010). New England Law Review, Vol. 44, No. 1, 2009. Available at SSRN: http://ssrn.com/abstract=1638997 or http://dx.doi.org/10.2139/ssrn.1638997

Contact Information

Phyllis Taite (Smith) (Contact Author)
Florida A&M University College of Law ( email )
201 Beggs Avenue
Orlando, FL 32801
United States
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