{"id":3968,"date":"2011-10-22T08:59:11","date_gmt":"2011-10-22T15:59:11","guid":{"rendered":"http:\/\/www.keytlaw.com\/azllclaw\/?p=3968"},"modified":"2011-12-03T10:37:33","modified_gmt":"2011-12-03T17:37:33","slug":"battley-vs-mortensen","status":"publish","type":"post","link":"https:\/\/www.keytlaw.com\/azllclaw\/2011\/10\/battley-vs-mortensen\/","title":{"rendered":"Alaska Asset Protection Trust Funded By Solvent Settlor Completely Fails To Protect Assets In Bankruptcy Against Future Creditors"},"content":{"rendered":"<p style=\"text-align: justify;\"><em><strong>Forbes<\/strong><\/em>:\u00a0 &#8220;In 2005, an Alaska resident, Mortensen, who was solvent and liquid at the time, settled a self-settled Alaska Domestic Asset Protection Trust (\u201cDAPT\u201d or \u201cAPT\u201d) for his own benefit and the benefit of his heirs, and contributed a $60,000 piece of property to the trust, along with $80,000 in cash that was a gift from his mother. . . . the <a href=\"http:\/\/www.forbes.com\/sites\/jayadkisson\/2011\/10\/19\/mortensen-alaska-asset-protection-trust-funded-by-solvent-settlor-completely-fails-to-protect-assets-in-bankruptcy-against-future-creditors\/\" target=\"_blank\">Mortensen opinion basically says that under Bankruptcy Code section 548(e), Asset Protection Trusts do not provide protection in bankruptcy for a period of at least 10 years<\/a> from the date the Trust was settled, where a purpose of the trust was to protect the trust assets from creditors of the settlor\/beneficiary.&#8221;<\/p>\n<p style=\"text-align: justify;\">Nationally recognized Nevada domestic asset protection trust lawyer <a href=\"http:\/\/www.oshins.com\" target=\"_blank\">Steve Oshins<\/a> says this about the Mortenson case:<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">&#8221; I have looked through the facts of the case carefully and there is absolutely no doubt in my mind that the judge would have been crazy to have ruled differently than he did.\u00a0 Other than some subtle inner-issues regarding how the judge looked at the 10-year bankruptcy clawback, this case was really a non-issue for DAPTs.\u00a0 We all knew since 2005 that there\u2019s a bankruptcy clawback.\u00a0 One of the reasons Bob and I are doing the teleseminar is to make sure the public doesn\u2019t misinterpret the case as being meaningful.\u00a0 With the viral effect of the Internet, those who don\u2019t do DAPTs could easily misinterpret this case.\u00a0 I think it is important for people to take note of what was done wrong in the case which is helpful because \u201cwhat not to do\u201d is a good training tool. &#8220;<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">Read &#8220;<a href=\"http:\/\/thetrustadvisor.com\/news\/mortensen\" target=\"_blank\">Trust Experts Say Judge Made \u201cBad Law\u201d in Landmark Asset Protection Case<\/a>,&#8221; which states:<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">&#8220;But trust companies that rely on asset protection as a selling point say the ruling is a fluke that won\u2019t affect truly well-constructed vehicles of this type \u2014 and the estate planners who know most about the field agree.\u00a0 . . .&#8217;If there was ever an illustration of how extreme facts contradict the law, this might be it,&#8217; says Wisconsin estate planner Bob Keebler.\u00a0 &#8216;The sky is not falling on domestic asset protection trusts,&#8217; he says. &#8216;This is really not a surprise to anyone&#8217;.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The case is <a href=\"http:\/\/www.assetprotectionbook.com\/forum\/viewtopic.php?f=71&amp;t=1556\" target=\"_blank\">Battley v. Mortensen, Adv. D.Alaska<\/a>, No. A09-90036-DMD, May 26, 2011.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Forbes:\u00a0 &#8220;In 2005, an Alaska resident, Mortensen, who was solvent and liquid at the time, settled a self-settled Alaska Domestic Asset Protection Trust (\u201cDAPT\u201d or \u201cAPT\u201d) for his own benefit and the benefit of his heirs, and contributed a $60,000 piece of property to the trust, along with $80,000 in cash that was a gift from his mother. . . . the Mortensen opinion basically says that under Bankruptcy Code section 548(e), Asset Protection Trusts do not provide protection in bankruptcy for a period of at least 10 years from the date the Trust was settled, where a purpose of the trust was to protect the trust assets from creditors of the settlor\/beneficiary.&#8221; Nationally recognized Nevada domestic asset protection trust lawyer Steve Oshins says this about the Mortenson case: &#8221; I have looked through the facts of the case carefully and there is absolutely no doubt in my mind that the judge would have been crazy to have ruled differently than he did.\u00a0 Other than some subtle inner-issues regarding how the judge looked at the 10-year bankruptcy clawback, this case was really a non-issue for DAPTs.\u00a0 We all knew since 2005 that there\u2019s a bankruptcy clawback.\u00a0 One of the reasons Bob and I are doing the teleseminar is to make sure the public doesn\u2019t misinterpret the case as being meaningful.\u00a0 With the viral effect of the Internet, those who don\u2019t do DAPTs could easily misinterpret this case.\u00a0 I think it is important for people to take note of what was done wrong in the case which is helpful because \u201cwhat not to do\u201d is a good training tool. &#8220; Read &#8220;Trust Experts Say Judge Made \u201cBad Law\u201d in Landmark Asset Protection Case,&#8221; which states: &#8220;But <a href=\"https:\/\/www.keytlaw.com\/azllclaw\/2011\/10\/battley-vs-mortensen\/\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,63],"tags":[61],"class_list":["post-3968","post","type-post","status-publish","format-standard","hentry","category-asset-protection","category-charging-orders","tag-domestic-asset-protection-trust"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Asset Protection Trust Fails To Protect Assets In Bankruptcy Against Future Creditors<\/title>\n<meta name=\"description\" content=\"The Mortensen case says that domestic asset protection trusts do not provide asset protection if the trust maker files for bankruptcy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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