What are Alaska and Delaware trusts?
Special trusts set up in these states can allow the donor of a trust to “have his cake and eat it, too.” Such trusts can shield property from certain creditors while allowing the donor to still retain a benefit from the trust. Traditionally, if the donor of a trust retains a benefit–such as access to some or all of the trust’s property–creditors can collect from the trust up to the limit of that benefit. Some high-net-worth individuals have created trusts in other countries–known as “offshore” trusts–in order to be shielded from creditors and still reap a benefit from the trust. In 1997, both Alaska and Delaware acted to permit such trusts to be created in their states (Nevada, Rhode Island, and Utah also have similar laws). So far, these trusts are untested in court, but at least the statutes in these two states are clear. It may make sense in employing these trust forms to keep all assets invested in Alaska or Delaware institutions so that it falls to courts in these states to up
