Using Another State’s Trust Laws to Enhance your Practice

Date: Tuesday, January 26, 2016
Time: 5:30pm - 8:00pm
Location: Santa Ana Country Club | 20382 Newport Boulevard | Santa Ana 92707
Speaker: Steven J. Oshins, Esq., AEP (Distinguished)

Dinner Registration: 5:30 PM | Dinner and Speaker Presentation: 6:15 to 8:00 PM

Topic Review: The speaker will spend the session developing different concepts and philosophies that should be built into trusts.  The speaker will put a special focus on the value in using a strong jurisdiction in which to situs the trust rather than simply selecting local law and failing to explore the substantial advantages of forum selection.

The Dynasty Trust concept will be explained, including the advantages in using a more favorable Dynasty Trust jurisdiction in order to save significant estate taxes that otherwise would have resulted from situsing the trust in the settlor’s home state.

The speaker will spend a lot of time talking about the advantages in drafting the trust as a discretionary trust rather than a support trust, and protecting the assets from divorcing spouses of the trust beneficiaries.

The next topic will be the Domestic Asset Protection Trust and whether it works for a resident of a state that doesn’t have a DAPT statute.  The speaker will explain the risks and offer a solution called a Hybrid Domestic Asset Protection Trust which is a variation of the regular Domestic Asset Protection Trust, but without the added risk.  This concept will be a central topic of the presentation.

The speaker then talk about the advantages of selecting a trust situs that has flexible Decanting statutes.  This allows the trustee to modify the trust through the years as circumstances change.

The presentation will finish with a discussion about how to design an out-of-state trust so that it can avoid state income tax on accumulated income after the trust is no longer a grantor trust.  This is an underused concept that very few planners consider when designing trusts.

Speaker Bio: Steve is a member of the Law Offices of Oshins & Associates, LLC in Las Vegas, Nevada.  Steve has been very active in helping get some of the most valuable trust and creditor protection laws passed in Nevada. In the 2001 legislative session, he co-authored Nevada’s charging order law for limited liability companies and limited partnerships, making the charging order the exclusive remedy for a judgment creditor under Nevada law. He co-authored a change to that law in the 2003 legislative session that enhanced the 2001 version of the Nevada law and then co-authored another charging order bill in the 2011 legislative session which included statorily protecting single member LLCs with charging order protection and statutorily disallowing any equitable remedies to apply to Nevada limited liability companies, limited partnerships and corporations (except for the alter ego theory which still applies to corporations). In the 2005 legislative session, Steve authored Nevada’s 365-year rule against perpetuities law that now allows people to set up 365-year dynasty trusts in Nevada.  He authored a law creating a new form of business entity called the Restricted LLC and Restricted LP in the 2009 legislative session making Nevada the first state to offer these favorable laws that allow for significantly higher valuation discounts than are allowed under any other state law.

Attorney, CPA, CSPG, Professional Fiduciary, Trust Officer, CTFA - This presentation is available for 1-hour continuing education credit.  This presentation is approved for 1-hour CEU with the CA Dept of Insurance (Course Number: 332011), and  is pending approval with the CFP Board of Standards.

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