Alaska Trust Act

A 1997 state law in Alaska that allows any American to place assets in an irrevocable trust that protects those assets from creditors and, in some circumstances, excludes them from the grantor's estate for tax purposes. In order for a trust to fall under the jurisdiction of the Act, at least one of the trustees must live or have a business in Alaska and the trust's records must be maintained in Alaska. Additionally, a certain percentage of the administration of the trust must take place in Alaska. The Act effectively made Alaska a tax shelter along the lines of the Cayman Islands, the Bahamas, and other offshore locations.

References in periodicals archive ?

Alaska was the first state to take action when its then-governor, Tony Knowles, signed the "Alaska Trust Act" into law on April 1, 1997.

Domestic asset protection trusts: examining the effectiveness of South Dakota asset protection trust statutes for removing assets from a settlor's gross estate

One of several Alaskans who worked to pass the Alaska Trust Act of 1997, Blattmachr is steeped in the intricacies of trust law.

Wealth Management for Alaskans

Prior to the passage of the Alaska Trust Act in 1997, U.S.

Alaska on the asset protection trust map: not far enough for a regulatory advantage, but too far for convenience?

The Alaska Trust Act does not prevent a creditor from voiding a transfer to an asset protection trust on grounds of fraud.

Asset protection planning with limited liability companies

The Alaska Trust Act and Delaware's Qualified Disposition in Trust Act amend their codes to allow settlors to make lifetime transfers into trust from which they are eligible, but not entitled, to receive distributions according to the discretion of a third-party trustee.(145) Alaska was the first to enact laws allowing self-settled spendthrift trusts, and Delaware followed just three months later.(146) Most of the essential provisions of the new trust laws are the same, but there are a few significant differences to be noted.(147) The Delaware Act was closely modeled after Alaska's legislation and in fact expressly stated its intention "to maintain Delaware's role as the most favored domestic jurisdiction for the establishment of trusts."(148)

Law for sale: Alaska and Delaware compete for the asset protection trust market and the wealth that follows

The Alaska Trust Act became effective April 2, 1997, and provides protection from creditors as well as unlimited trust duration.

Asset protection trusts: evaluating new opportunities under 1997 legislation

Specifically, the new Alaska Trust Act allows Alaskans and residents of other states to establish perpetual trusts in Alaska for the benefit of themselves and their families.

The Alaska Trust Act

In 1997, the Alaska Trust Act repealed the Rule against Perpetuities, which prohibited trusts from lasting forever.

Planning for the future: trusts and escrows: your financial institution and lawyer can help you protect your assets for your heirs

Less than a year after the enactment of the Alaska Trust Act, the Alaska legislature again created planning opportunities for residents and nonresidents by passage of the Alaska Community Property Act (AS 34.77), signed into law on May 22, 1998.

Alaska Community Property Act

It is that aspect of the tax law that the Alaska Trust Act impacts.

Roundtable discussion

moved into uncharted waters in Alaska, breaking ground as the first independent trust company formed in the state after passage of the Alaska Trust Act. The company provides wealth management services and innovative trust and investment management services.

The Aleut Corporation

The Alaska Trust Act (which became effective April 2, 1997) enables Alaska to offer something more to the "Lower 48" beyond beautiful scenery and oil production.