Hawaii Enacts Domestic Asset Protection Trust Legislation and Reinstates Separate State Estate Tax

Nice to have options, but the Hawaii DAPT is inferior for several reasons, e.g., one percent excise tax; cannot hold land in it.  Plus, Hawaii to me is actually a little more offshore than domestic, and I don't mean that geographically.  Political risk is a factor as Hawaii is much more socialistic than other DAPT states and may hit the rocks, especially with DC sirens singing L'Internationale.  This may have been a better idea back in the days of the Old Republic when we actually had a foreign policy protecting Hawaii from foreign invasion or subversion.

United States, Tax, Hawaii Enacts Domestic Asset Protection Trust Legislation and Reinstates Separate State Estate Tax – McGuireWoods LLP – 03/08/2010, Personal Tax & Estate Planning, Offshore.

Until this year, eleven states permitted domestic asset protection trusts pursuant to which the settlor would receive spendthrift protection from creditors if certain requirements were met. The eleven states were Missouri, Alaska, Delaware, Nevada, Rhode Island, Utah, South Dakota, Wyoming, Tennessee, New Hampshire and Oklahoma (Oklahoma's law is more restrictive than those in the other states). Hawaii became the twelfth state this year.

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