This article was originally posted on Steve Leimberg’s Estate Planning Email Newsletter as Archive Message #215.
The Illinois Supreme Court recently held in the Rush University case that a self-settled trust was void as against public policy. Some commentators seized on this holding to reassert that domestic self-settled trusts (DAPTs) are not viable to use. The analysis, however, is much more complex, and the case does not necessarily add great weight to the risk profile of DAPTs. However, the case is an excellent catalyst to re-examine the discussions about DAPTs, especially in light of the many clients creating completed gift DAPTs in 2012 to take advantage of the current $5.12 million exemption. The discussion below tackles this topic and also endeavors to provide practical insight into the relative risk of many popular irrevocable completed gift trust planning techniques.
To read the full article, click here.
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