Alaska Trust Act
What is the Alaska Trust Act
The Alaska Trust Act gives protection against creditors for irrevocable trusts given that the trust has a grantor who is a discretionary beneficiary. For the statute to be applicable, the accompanying requirements must be met:
- Something like one of the trustees must dwell in Alaska or have a principal place of business in Alaska.
- A percentage of the assets of the trust is required to be on deposit in a checking account, brokerage account or other comparative account.
- The records of the trust must be genuinely situated in Alaska, and a percentage of the administration of the trust must happen in Alaska.
BREAKING DOWN Alaska Trust Act
The Alaska Trust Act can save estate taxes, and the assets of the trust can be vaccinated from the claims of obscure future creditors. The trustee must either be a bank or trust company with its principal place of business in Alaska, or an individual who is a resident of Alaska. The Alaska trustee must have the power to keep up with trust records in Alaska and file tax returns for the trust. Also, part or all of the administration must happen in Alaska, like holding some trustee gatherings or influencing a few trades.
Alaska's laws are among the most progressive in the U.S., giving a number of unique estate planning and tax savings benefits not available in most different states. Alaska was the primary state to pass legislation approving self-settled domestic asset protection trusts and continues to be in the very front in refreshing and working on its statutes to give favorable protections to individuals, families and family-possessed elements. Alaska has become one of the top states of decision for the location of trusts and family limited liability companies.
History of the Alaska Trust Act
The Alaska Trust Act was spearheaded by Jonathan Blattmachr, who was a partner at the New York firm of Milbank, Tweed, Haley and McCloy when he formulated a law that could make the new Alaskan trust. He was assisted along in his vision by his sibling, Douglas Blattmachr, the chief executive officer of Alaska With trusting Co. His firm had the option to lobby to get the law passed and ultimately, Douglas became head of the Alaska Trust Company, which later turned into the Peak Trust Co.
As of March 2018 , the Blattmachr brothers were back, pushing for support for bill HB 208.