If you are a real estate investor, physician or other entrepreneur who was interested in protecting your assets and limiting your risk to potential lawsuits, as a Michigan resident, your only option was to look to other states such as Delaware or Alaska for such planning options. This was a legally questionable strategy if you did not reside in one of those states. Now, Michigan residents will no longer need to look elsewhere. On December 8, 2016, Governor Snyder signed a new law called the “Qualified Dispositions in Trust Act” which permits Michigan asset protection trusts. On March 8, 2017 – the effective date of the law – Michigan became one of only 17 states that permit these types of trusts.
The new law is a game changer in this state for asset protection planning. Not only can a Michigan resident now legally create his or her own trust to shield assets from creditors, but he or she can also maintain a beneficial interest in the trust property. Here are just a few advantages of the new law: [Read more…]