New Self-Settled Asset Protection Trust Law

Mississippi recently enacted legislation that now allows self-settled asset protection trusts. The Mississippi Qualified Disposition in Trust Act permits the grantors to be trust beneficiaries in some situations. Here are some of the requirements to create such a trust under the new law and receive the creditor protection that comes with it:

• The trust must be irrevocable
• The settler is limited in the types of interest they may retain
• A “qualified affidavit” must be signed by the settler
• A liability insurance policy must be created for the trust

See Daniel G. Worthington & Mark Merric, Mississippi Enacts Self-Settled Asset Protection Trust Legislation, Wealth Management, July 15, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.