Comment on In Texas We Trust: The Need to Bring Domestic Asset Protection Trusts to Texas
Billions in American-made money is currently being held in foreign jurisdictions. Just southeast of the United States in the Caribbean Sea, the number of financial institutions in the Cayman Islands is astonishing. The Cayman Islands are a small tourist destination in the middle of the Caribbean with many of the major investment centers found in a metropolitan area. The three Cayman Islands serve as a home to more than 212 different banks, holding over $1.5 trillion in internation assets. The Cayman Islands are one of the most highly sought after foreign destinations for American to store their money. The question is, why does America not get to keep all of that American money in our nation? The answer is, the United States can, if more states adopt domestic asset protection trusts into law, a reverse effect can and will happen.
Seventeen states have adopted domestic asset protection trusts into law and experiencing widespread success. In order to continue this trend of bringing assets back into the U.S., more than seventeen states must follow suit. Texas, being a large and prosperous state with a booming economy, can benefit itself and the nation be choosing to legalize domestic asset protection trusts.
This comment will address the various issues and successes of domestic asset protection trusts. First, this comment will analyze the history of assets protection trusts to understand the origins and purposes of this unique form of trust. Next, this comment will explore different domestic asset protections trusts adopted by various states and the reasons why some states are more effective than others. Finally, this comment will discuss the need for Texas to join the trend of adopting asset protection trusts. In doing so, this comment will provide a set of criteria and a path for lawmakers to follow when Texas decides to adopt domestic asset protection trusts into law.