San Diego, CA (PRWEB) March 08, 2013
As of March 20, 2013, Ohio becomes the fifteenth state to allow property and savings to be sheltered from lawsuits and creditor collection actions — a relief for many individuals, small businesses owners and professionals concerned about the threat of personal or business liability risks. These new laws severely limit the traditional powers of financial institutions and trial attorneys to collect on loans and judgments - at least from those who have taken full advantage of the legal benefits offered by Ohio and the other states.
A new article by San Diego attorney Robert J. Mintz in Physicians Money Digest, describes the creditor protection laws adopted by Ohio and the previous states and examines how these laws are intended to shield personal assets from lawsuits and claims. According to Mr. Mintz, residents of Ohio are now permitted to establish a trust within the state, to hold a home, savings and investments which are safely insulated from a creditor in the event of a future lawsuit. As Ohio Representative Christina Hagan put it in the Akron Legal News“…(the new law) will allow Ohio citizens, business owners and entrepreneurs to better protect their hard-earned assets, homes and businesses.”
Some key restrictions of the Ohio law are that it can’t be used to protect against those who already have an existing claim or from liabilities arising within 18 months of establishing the trust. Also, the trust won’t be effective against claims of a spouse, if the trust was created during the marriage.
According to Mr. Mintz, many issues about the laws in Ohio and the other states are too new to have been fully resolved. But the growing number of states adopting asset protection legislation certainly makes it more likely that the application of the laws and their parameters will be more fully clarified within a reasonable period.
A complete copy of the article is available at New State Laws Allow Residents to Shield Assets From Creditors