The Sollertis Slide Trust®
At Sollertis, we understand how complex developing an excellent wealth protection strategy can be when there are so many splintered assets around you coupled with the various advisors you have established relationships with over years.
When you become a client at Sollertis, as part of your Master Asset Protection Plan, we may suggest the Sollertis Slide Trust® as a method of state-flexible domestic asset protection trust.
The Slide Trust provides layers of security, control, oversight, checks, and balances while being the ultimate domestic asset protection tool that allows our clients to protect and structure their wealth wisely, and in a way that fits their lifestyle and risk tolerance.
What are asset protection trusts?
Because the Slide Trust is a domestic asset protection trust, it may be helpful to understand precisely what that means through a brief digest of asset protection trust history.
Trusts were initially set up by parents for their children to protect the money and ensure the child did not waste their money carelessly. The Trustee was able to hold the funds protected in trust rather than giving money to the child for outright spending.
When the child got into debt, creditors would sue, trying to force the trustee to give money to the child to pay the creditor, or to force the trustee to pay the creditor directly. To prevent these lawsuits, attorneys began including a ‘spendthrift clause’, which protected the assets from creditors of those children.
The climate changed in 1989, when the Cook Islands enacted powerful asset protection laws. Soon thereafter, Alaska became the first U.S. state to enact asset protection legislation in 1997.
As of 2020, nineteen states allow self-settled asset protection trusts.
Offshore trusts, while offering a higher level of protection, require a large amount of effort and money to maintain. Domestic trusts are easier for Settlors to manage and tend to be more easily accessible.
Each state has their own asset protection laws and each state regularly amends them as they compete with each other for asset protection trust business, which means that the best state in which to establish your trust changes from time to time.
For California Settlors, one of the most important aspects of domestic asset protection law is whether the jurisdiction over the trust falls to the state in which the trust is formed or to the state where the Settlor resides. California law does not favor asset protection, so trusts should be formed (sited) in states which do favor asset protection.
Currently, Wyoming is our favorite state for domestic asset protection trusts. They have shown a long-term commitment to asset protection, and they have updated their laws recently to ensure their state will control their asset protection trusts.
We can expect this to change in the coming years, or expect another state to change their asset protection laws for the better which will surpass those presently in Wyoming.
To help our clients take advantage of the best options for domestic asset protection trust laws, we created the Sollertis Slide Trust.
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What Is The Slide Trust?
As states change their domestic asset protection trust laws, Settlors that established trusts in certain states will no longer have the best protection. For example, previously, Delaware was a favorite state for domestic asset protection, but now, it’s Wyoming.
The slide trust allows you to choose the best state, as it ‘slides’ from state to state as needed. Though our client may have their trust start in one state, with a Slide Trust, their trust will ‘slide’ to a better jurisdiction if the original state’s laws change.
How Does A Slide Trust Work?
The Slide Trust is a self-settled asset protection trust, which means the Settlor places his or her assets into the trust for his or her own benefit. A spendthrift clause is included, protecting the assets from creditors.
Creditors that sue California residents will typically ask a California court to enforce state law requiring you to transfer your assets to the creditor. But because your assets will be in your Slide Trust and held by an out-of-state Trustee who is not subject to the jurisdiction of the California courts, you will not be able to transfer your assets to your creditor. To force your Trustee to do anything, your Creditor will need to go to the state where your Trustee is located, where the courts and laws favor asset protection.
What Do You Need to Know?
Like an insurance policy, Slide Trusts will not work unless they are in place before a crisis, lawsuit, threat, claim, or danger occurs. To take advantage of our innovative and ultimate domestic asset protection tool, you must set it up beforehand. If you are not comfortable taking your assets offshore, but you still desire a wealth protection plan for you, your family, and your business – the Sollertis Slide Trust may be the perfect fit for protecting your wealth.
How To Set Up A Slide Trust?
The Sollertis team, led by Chief Counsel William R. Simon, Jr., is a leading law firm in asset protection for California business owners, offering creative strategies for our clients to foresee, handle, and prevent legal issues from disrupting their business or personal happiness. Contact our firm today to explore how the Sollertis Slide Trust can work for you.
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