(g) The assets being transferred to the trust were not derived from unlawful activities. (f) The transferor does not contemplate filing for relief under the provisions of the federal bankruptcy code and (e) The transferor is not involved in any administrative proceedings, except for those administrative proceedings identified on an attachment to the affidavit (d) The transferor does not have any pending or threatened court actions against the transferor, except for those court actions identified by the transferor on an attachment to the affidavit (c) The transferor does not intend to defraud a creditor by transferring the assets to the trust (b) The transfer of the assets to the trust will not render the transferor insolvent (a) The transferor has full right, title, and authority to transfer the assets to the trust A “qualified trustee” is someone other than the transferor who is either an individual resident of this state or is a corporate trustee lawfully authorized to do business in Mississippi by an appropriate financial agency.īefore the assets may be transferred to the trustee, the transferor creating the trust must execute a “qualified affidavit.” This is a sworn affidavit signed by the transferor or, in the event of a disposition by a trustee, the affidavit shall be signed by the transferor who made the original transfer into the trust. The transferor may transfer or assign ownership of property to one or more “qualified trustees” by means of a qualified disposition trust. Under the Act, a “transferor” is a person who owns real or personal property, has a legal power over the disposition of such property, or owns such property as a trustee (such as in a revocable living trust). This law is known as the Mississippi Qualified Disposition in Trust Act.Ī “qualified disposition trust” must (i) state that the law of this state will govern the validity, construction and administration of the trust, (ii) be irrevocable, and (iii) contain a “spendthrift clause” stating that the transferor will have no power or authority to pledge or assign the property or benefits from the trust to any other person. However, effective Jstate law was changed to allow a Mississippi resident to create a “qualified disposition trust” (QDT) that can be used to protect assets from the claims of the trust creator’s creditors. While some states have laws permitting placing such assets in trusts while allowing the trust creator to remain a beneficiary, Mississippi has not allowed this. Many clients have asked about using trusts to place personal assets (such as homes, other real property, investment funds) beyond the reach of potential creditors’ claims.
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