Tennessee asset protection trusts

The Tennessee Attorney General has issued an opinion on Tennessee Asset Protection Trusts. For those of you who do not know, the Tennessee Investment Services Act allows a person to create an asset protection trust that shields assets from future creditors. The Attorney General clarified that “with respect to a creditor’s claim arising after a qualified disposition, Tenn. Code Ann. 35-16-104(a) grafts an additional limitation on the UFTA’s [Uniform Fraudulent Transfer Act] provisions by requiring such a creditor to show that the qualified disposition was made with the actual intent to defraud the creditor.” In sum, good news for people using trusts and bad news for creditors.

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