### WordPress - Web publishing software
Copyright 2011-2019 by the contributors
This program is free software; you can redistribute it and/or modify
it under the terms of the GNU General Public License as published by
the Free Software Foundation; either version 2 of the License, or
(at your option) any later version.
This program is distributed in the hope that it will be useful,
but WITHOUT ANY WARRANTY; without even the implied warranty of
MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
GNU General Public License for more details.
You should have received a copy of the GNU General Public License
along with this program; if not, write to the Free Software
Foundation, Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA
This program incorporates work covered by the following copyright and
permission notices:
b2 is (c) 2001, 2002 Michel Valdrighi - m@tidakada.com -
http://tidakada.com
Wherever third party code has been used, credit has been given in the code's
comments.
b2 is released under the GPL
and
WordPress - Web publishing software
Copyright 2003-2010 by the contributors
WordPress is released under the GPL
---
### GNU GENERAL PUBLIC LICENSE
Version 2, June 1991
Copyright (C) 1989, 1991 Free Software Foundation, Inc.
51 Franklin Street, Fifth Floor, Boston, MA 02110-1301, USA
Everyone is permitted to copy and distribute verbatim copies
of this license document, but changing it is not allowed.
### Preamble
The licenses for most software are designed to take away your freedom
to share and change it. By contrast, the GNU General Public License is
intended to guarantee your freedom to share and change free
software--to make sure the software is free for all its users. This
General Public License applies to most of the Free Software
Foundation's software and to any other program whose authors commit to
using it. (Some other Free Software Foundation software is covered by
the GNU Lesser General Public License instead.) You can apply it to
your programs, too.
When we speak of free software, we are referring to freedom, not
price. Our General Public Licenses are designed to make sure that you
have the freedom to distribute copies of free software (and charge for
this service if you wish), that you receive source code or can get it
if you want it, that you can change the software or use pieces of it
in new free programs; and that you know you can do these things.
To protect your rights, we need to make restrictions that forbid
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These restrictions translate to certain responsibilities for you if
you distribute copies of the software, or if you modify it.
For example, if you distribute copies of such a program, whether
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you have. You must make sure that they, too, receive or can get the
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We protect your rights with two steps: (1) copyright the software, and
(2) offer you this license which gives you legal permission to copy,
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Finally, any free program is threatened constantly by software
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The precise terms and conditions for copying, distribution and
modification follow.
### TERMS AND CONDITIONS FOR COPYING, DISTRIBUTION AND MODIFICATION
**0.** This License applies to any program or other work which
contains a notice placed by the copyright holder saying it may be
distributed under the terms of this General Public License. The
"Program", below, refers to any such program or work, and a "work
based on the Program" means either the Program or any derivative work
under copyright law: that is to say, a work containing the Program or
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translated into another language. (Hereinafter, translation is
included without limitation in the term "modification".) Each licensee
is addressed as "you".
Activities other than copying, distribution and modification are not
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running the Program is not restricted, and the output from the Program
is covered only if its contents constitute a work based on the Program
(independent of having been made by running the Program). Whether that
is true depends on what the Program does.
**1.** You may copy and distribute verbatim copies of the Program's
source code as you receive it, in any medium, provided that you
conspicuously and appropriately publish on each copy an appropriate
copyright notice and disclaimer of warranty; keep intact all the
notices that refer to this License and to the absence of any warranty;
and give any other recipients of the Program a copy of this License
along with the Program.
You may charge a fee for the physical act of transferring a copy, and
you may at your option offer warranty protection in exchange for a
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**2.** You may modify your copy or copies of the Program or any
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**a)** You must cause the modified files to carry prominent notices
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when run, you must cause it, when started running for such interactive
use in the most ordinary way, to print or display an announcement
including an appropriate copyright notice and a notice that there is
no warranty (or else, saying that you provide a warranty) and that
users may redistribute the program under these conditions, and telling
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Program itself is interactive but does not normally print such an
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an announcement.)
These requirements apply to the modified work as a whole. If
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Thus, it is not the intent of this section to claim rights or contest
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In addition, mere aggregation of another work not based on the Program
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**8.** If the distribution and/or use of the Program is restricted in
certain countries either by patents or by copyrighted interfaces, the
original copyright holder who places the Program under this License
may add an explicit geographical distribution limitation excluding
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**NO WARRANTY**
**11.** BECAUSE THE PROGRAM IS LICENSED FREE OF CHARGE, THERE IS NO
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EXCEPT WHEN OTHERWISE STATED IN WRITING THE COPYRIGHT HOLDERS AND/OR
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KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE
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PROGRAM IS WITH YOU. SHOULD THE PROGRAM PROVE DEFECTIVE, YOU ASSUME
THE COST OF ALL NECESSARY SERVICING, REPAIR OR CORRECTION.
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WRITING WILL ANY COPYRIGHT HOLDER, OR ANY OTHER PARTY WHO MAY MODIFY
AND/OR REDISTRIBUTE THE PROGRAM AS PERMITTED ABOVE, BE LIABLE TO YOU
FOR DAMAGES, INCLUDING ANY GENERAL, SPECIAL, INCIDENTAL OR
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PROGRAM (INCLUDING BUT NOT LIMITED TO LOSS OF DATA OR DATA BEING
RENDERED INACCURATE OR LOSSES SUSTAINED BY YOU OR THIRD PARTIES OR A
FAILURE OF THE PROGRAM TO OPERATE WITH ANY OTHER PROGRAMS), EVEN IF
SUCH HOLDER OR OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.
### END OF TERMS AND CONDITIONS
### How to Apply These Terms to Your New Programs
If you develop a new program, and you want it to be of the greatest
possible use to the public, the best way to achieve this is to make it
free software which everyone can redistribute and change under these
terms.
To do so, attach the following notices to the program. It is safest to
attach them to the start of each source file to most effectively
convey the exclusion of warranty; and each file should have at least
the "copyright" line and a pointer to where the full notice is found.
one line to give the program's name and an idea of what it does.
Copyright (C) yyyy name of author
This program is free software; you can redistribute it and/or
modify it under the terms of the GNU General Public License
as published by the Free Software Foundation; either version 2
of the License, or (at your option) any later version.
This program is distributed in the hope that it will be useful,
but WITHOUT ANY WARRANTY; without even the implied warranty of
MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
GNU General Public License for more details.
You should have received a copy of the GNU General Public License
along with this program; if not, write to the Free Software
Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301, USA.
Also add information on how to contact you by electronic and paper
mail.
If the program is interactive, make it output a short notice like this
when it starts in an interactive mode:
Gnomovision version 69, Copyright (C) year name of author
Gnomovision comes with ABSOLUTELY NO WARRANTY; for details
type `show w'. This is free software, and you are welcome
to redistribute it under certain conditions; type `show c'
for details.
The hypothetical commands \`show w' and \`show c' should show the
appropriate parts of the General Public License. Of course, the
commands you use may be called something other than \`show w' and
\`show c'; they could even be mouse-clicks or menu items--whatever
suits your program.
You should also get your employer (if you work as a programmer) or
your school, if any, to sign a "copyright disclaimer" for the program,
if necessary. Here is a sample; alter the names:
Yoyodyne, Inc., hereby disclaims all copyright
interest in the program `Gnomovision'
(which makes passes at compilers) written
by James Hacker.
signature of Ty Coon, 1 April 1989
Ty Coon, President of Vice
This General Public License does not permit incorporating your program
into proprietary programs. If your program is a subroutine library,
you may consider it more useful to permit linking proprietary
applications with the library. If this is what you want to do, use the
[GNU Lesser General Public
License](http://www.gnu.org/licenses/lgpl.html) instead of this
License.
What Is An Asset Protection Trust (APT)? - sinth.info
Trusts are often used to pass down wealth from one generation to the next. But a specific type of trust — an asset protection trust — offers protection from creditors while you’re still alive.
In this article, we’ll explore the different kinds of asset protection trusts, how they work and what you should know before setting one up.
What is an asset protection trust (APT)?
An asset protection trust is an estate planning tool that shields a person’s assets from creditors and lawsuits. These complex financial and legal structures often require a lawyer to create.
It’s an irrevocable trust, which means you relinquish control over assets placed inside the trust to a third-party trustee, such as a bank, accountant or lawyer. Once established, it’s nearly impossible to alter the terms of the trust.
By signing over ownership of assets to the trust, these assets technically belong to a different entity instead of you. This generally puts your assets out of reach of creditors, liens and other judgements.
Asset protection trusts are popular with people in high-risk occupations (think doctors and real estate developers) and very wealthy individuals looking to shield their net worth from creditors. They may also be used in lieu of a prenuptial agreement.
Need expert guidance when it comes to managing your investments or planning for retirement?
Bankrate’s AdvisorMatch can connect you to a CFP® professional to help you achieve your financial goals.
Types of asset protection trusts
There are three types of asset protection trusts. Each functions differently, and each comes with its own unique set of advantages and disadvantages.
Domestic APTs
Domestic asset protection trusts are a legal way to safeguard wealth from creditors and potential lawsuits. Domestic APTs are relatively quick and easy to establish in the 20 states that permit them:
Alabama
Alaska
Connecticut
Delaware
Hawaii
Indiana
Michigan
Mississippi
Missouri
Nevada
New Hampshire
Ohio
Oklahoma
Rhode Island
South Dakota
Tennessee
Utah
Virginia
West Virginia
Wyoming
While domestic APTs are irrevocable, you as the creator still retain some control over the trust. How much control varies by state, but in general, you retain the ability to:
Receive trust income
Direct (but not consent to or veto) your trustee’s investment decisions and distribution decisions
Remove and appoint new trustees and trust advisors
Some states permit the trust creator even broader powers. However, in many states, if the person who sets up the trust can also benefit from it, creditors may still be able to make a claim against the trust’s assets.
Depending on the state, domestic asset protection trusts can be used to avoid or lower state income taxes. So long as the trust is established in a state with no state income tax (such as Alaska or Wyoming), the assets inside the trust aren’t subject to state taxes.
But domestic APTs aren’t bulletproof. Nearly all states, except Nevada, have carve-outs that allow certain creditors to make claims on trust assets, such as in divorce settlements or child support disputes.
A domestic APT is more of a proactive move than a short-term strategy: There’s a period of limitations before asset protection kicks in, and it can’t protect you from an outstanding claim already taken out against you. The number of years required to achieve asset protection within the trust varies from state to state.
Foreign APTs
A foreign asset protection trust, also known as an offshore trust, is a legal structure set up outside the United States to shield the owner from creditors. Foreign APTs are more expensive to create than domestic APTs.
To establish a properly structured foreign APT, you’ll need an estate planning attorney who is well-versed in the selected country’s laws and regulations.
In certain places, like the Cook Islands, the creator of the trust can still have some control over it. The creator can change its terms, manage the property inside it, choose or remove the trustee and be a named beneficiary. If an asset transfer to the trust is found to be fraudulent, it doesn’t mean the entire trust is void — only the part that was transferred dishonestly can be used to pay back the creditor.
Wealthy business owners may establish a foreign APT as part of a larger strategy to dodge creditors, along with the use of insurance, offshore LLCs and offshore bank accounts.
Foreign APTs are not intended to avoid income or estate taxes. In fact, the IRS prohibits it.
While some promoters of foreign APTs claim that the transfer of U.S.-based assets (such as a home) protect the creator from owing income or estate taxes, the IRS disagrees.
“If the taxpayer continues to reside in his home and control his assets, those assets may be seized and sold in satisfaction of his liabilities,” according to an IRS tax publication.
So beware of any foreign APTs marketed as part of a package to avoid federal income or employment taxes because “the courts can ignore such trusts and order the taxpayer’s property sold to satisfy the outstanding liabilities.”
Medicaid APTs
A Medicaid asset protection trust is an estate planning tool used to shield assets from Medicaid in order to qualify for benefits. It’s most often used by older individuals who are trying to qualify for Medicaid long-term care services.
Medicaid considers a person’s total assets and income when determining eligibility. Each state sets its own asset limits, but generally, it’s $2,000 or less. While certain assets aren’t counted toward that total — such as an applicant’s primary residence — many people exceed the asset limit while still struggling to afford long-term care.
Placing things like a second home or a retirement account inside an asset protection trust prevents these items from being counted against you during Medicaid eligibility. Without this type of trust, a Medicaid applicant would need to “spend down” nearly all of their resources in order to qualify for the program.
Another benefit of APTs is they shield a person from Medicaid estate recovery. When a Medicaid recipient dies, the state in which they received Medicaid can attempt to collect reimbursement for long-term care expenses from the deceased person’s estate. However, the state can’t come after those assets if they’re placed in an asset protection trust.
One of the biggest drawbacks about Medicaid APTs is that they are not a viable short-term solution. Medicaid checks to ensure no assets were gifted or sold in the five years prior to applying for the program, a practice known as the “look back” period. If Medicaid finds out that assets were transferred to a trust less than five years before applying for the program, it can deny the application.
Advantages and disadvantages of APTs
Each type of asset protection trust comes with its own unique advantages and disadvantages. For example, domestic APTs are relatively quick to establish, while foreign APTs are much more complex and require a deep understanding of the other country’s tax laws.
Here are some pros and cons shared by all APTs.
Pros
Wealth protection: Assets held in the trust are shielded from creditors, providing a level of financial security.
Tax efficiency: Domestic protection trusts established in states without state income tax may avoid state taxation. However, no asset protection trust is intended to shield the creator from federal income tax or estate tax.
Privacy: Trusts provide a level of confidentiality because they are not public documents, unlike wills.
Cons
Complex to set up: You’ll need to hire an experienced attorney to create an asset protection trust. It can take months to get everything drafted and finalized.
Expensive: Creating a domestic APT can cost $2,000 to $5,000 and up, while foreign APTs generally start at $20,000 and up.
Limited protection: Generally, an APT must be created before any claims are brought against you. For domestic APTs, it can also take several years after the trust is established before assets are fully protected from creditors.
Establishing an asset protection trust
Are you considering creating an asset protection trust? Here are the general steps you’ll need to follow:
Speak with a lawyer: Setting up an asset protection trust requires working with an experienced estate planning attorney.
Choose the right jurisdiction: Your attorney will help you identify the best state or country to establish the trust. If you’re establishing a domestic APT, states like Alaska, Delaware and Nevada are popular choices, though regulations around them change frequently.
Draft the trust agreement: Your attorney will create a comprehensive trust agreement, which will outline the trust’s terms, conditions, trustee and other details.
Select a trustee: Pick a third-party individual or institution to manage the trust. They’ll oversee the assets and ensure they’re distributed according to the trust’s terms.
Transfer your assets: Move your chosen assets into the trust. This could include real estate, investments, business holdings and other property, like boats. Keep detailed records of these transfers.
Bottom line
An asset protection trust is a complex financial planning tool designed to protect the property of high-net worth people from creditors. While APTs offer valuable benefits like wealth protection, tax efficiency and privacy, they can be complex and expensive to set up, requiring careful planning and legal expertise. If you’re considering establishing an APT, consulting with an experienced attorney and a financial advisor is essential.