Asset protection is an important step in sound financial planning, but laws and legal procedures often vary from state to state. For individuals living in the Salt Lake City area, there are several aspects of local law that are distinct from the rest of the nation.
The most recent development in Utah came in 2013, when the H.B. 222 asset protection trust statute replaced the state’s previous statute. As reported by the Utah Trust & Estate Educational Resource Center, the new statute protects trust assets from future creditors, providing that at least one trustee involved is a resident of the state â€œor a Utah trust company.â€ This only applies to irrevocable trusts, though there is no limit to the amount of assets that can be placed in the trust. Utah is also unique in that the limitations period for an asset protection trust can be shortened to only 120 days â€“ significantly shorter than neighboring states.
There are also several exemptions that Salt Lake City-area residents should be aware of, such as exemptions for homestead protection, life insurance benefits, IRA assets and disability benefits. Here at York Howell, our attorneys are ready to help you navigate the laws that are unique to our state, and help you develop a plan that will prove the most effective for your assets.