Baker Donelson reports that Mississippi recently became the 16th state to pass legislation permitting the creation of domestic asset protection trusts. The new law was effective July 1, 2014.

Under the new Mississippi Act, a domestic asset protection trust, called a “qualified disposition trust” (QDIT), is an irrevocable trust that contains a spendthrift clause and incorporates Mississippi law to govern the validity, construction and administration of the trust. Generally, the assets in a QDIT are protected from seizure by future creditors of the creator, subject to the exceptions discussed below.

via Spotlight on Mississippi: Domestic Asset Protection Trust Legislation | Baker Donelson – JDSupra.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.