Go Directly to Jail, Do Not Collect $200! Do Asset Protection Trusts Carry a Mandatory “Go to Jail” Card? Should They?

Alexander A. Bove Jr. (Bove & Langa, PC, Boston, Massachusetts) published an Article in the ABA Probate & Property Magazine, Go Directly to Jail, Do Not Collect $200! Do Asset Protection Trusts Carry a Mandatory “Go to Jail” Card? Should They?, Probate & Property Magazine, September/October 2023. Provided below is an introduction to the Article:

Someone once said, “Believe none of what you read and half of what you see,” or something like that. I guess the message is to be cautious and rely only on what you can prove to your satisfaction. A recent article that caught my attention in a popular professional journal (name withheld) is an excellent example of the need to be cautious.

The article’s premise, in no uncertain terms, warns practitioners that “self-settled offshore trusts are increasingly ineffective (emphasis added) in protecting assets from creditors of US citizens, residents, and those settlors with US connections.” The article suggests that in many, if not most, cases, unless the settlor is willing to transfer the trust funds over to the court, establishing such trusts is likely to result in the settlor of the trust being jailed.

In my opinion, this information is quite misleading, if not downright false, and does a considerable disservice to practitioners who may not have more than a bit of experience with “offshore trusts.”