Navigating the Minefield
Did You Know? In this month’s cover article, we revealed some little- known facts about the characters of Star Wars, but check out these fun facts about the actors who brought the magic to life! HARRISON FORD’S CASTING Harrison Ford was not initially considered for the role of Han Solo. He was brought in to feed lines to other actors during auditions and impressed Lucas so much that he was offered the part. PETER CUSHING’S SHOES Peter Cushing, who played Grand Moff Tarkin, had costume shoes that were too small. So, he wore slippers during many of his scenes. He managed to shoot many of his scenes from the waist up to keep the slippers out of the shot. MARK HAMILL’S VOICE Aside from playing Luke Skywalker, Mark Hamill has had a career as a voice actor. One of his most famous roles voicing the Joker in various Batman animated series and video games.
How California Business Owners Can Safely Use Out-of-State DAPTs
Domestic Asset Protection Trusts (DAPTs) are promoted as a way to shield assets from future creditors, but they aren’t recognized in all states, and California does not recognize them. But that doesn’t mean California business owners can’t establish DAPTs in states that allow them. In doing so, it’s important to understand the limitations and risks associated with doing so. For example, in the case of In re Huber (2013), state law overrode the protections of an out-of-state DAPT, leaving assets vulnerable. CASE LAW OFFERS CAUTIONARY TALES FOR DAPTS. In re Huber , a real estate developer from Washington, opted to establish a DAPT in Alaska in 2008 as the real estate market was collapsing. He placed cash into the trust while most other assets remained in Washington. His son and an Alaskan trust company served as trustees. The settlor filed for bankruptcy in 2011; however, creditors attempted to access the trust’s assets. Ultimately, the bankruptcy court in Washington applied Washington law instead of Alaska’s, invalidating the trust’s protection. Washington law prevailed because the settlor, beneficiaries, and most of the assets were in Washington, and Washington had a clear public policy against self-settled asset protection trusts. As a result, the trust failed to protect the assets as intended. This ruling highlights a key issue: Courts are unlikely to honor a DAPT’s protections if the trust creator, assets, and beneficiaries are primarily located in a state that does not recognize DAPTs. Similar outcomes have occurred in other cases from other states, including Dahl v. Dahl in Utah (no, not us!), where the court refused to apply Nevada law to protect a DAPT established by a Utah resident as it contained marital property from Utah. The pattern is clear — the state’s public policy and the location of assets play a decisive role in whether a DAPT will be upheld. ASSET PROTECTION PLANNING FOR CALIFORNIA BUSINESS OWNERS. Business owners looking to protect their assets need strategies that will hold up in California courts. To ensure your plan aligns with both your business goals and California law, connect with Dahl Law Group. We can help you choose the best options to protect your wealth and provide your business and family long-term security.
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