ASSET PROTECTION PLANNING
Asset protection can be found in many different forms, including insurance, business entities, retirement accounts, homestead exemptions, and asset protection trusts. These varying types of asset protection may be suitable for some individuals, while not suitable for others. The Majors Law Firm, P.C. can help identify and implement those asset protection strategies that may be suitable for the client.
Domestic Asset Protection Trust
Effective as of July 1, 2007, the Wyoming Legislature enacted legislation permitting individuals to establish asset protection trusts in Wyoming, formally known as a Qualified Spendthrift Trust, which can provide certain protection from creditors, liabilities and judgments. Our office assists clients and attorneys throughout the country with the establishment of domestic asset protection trusts in the State of Wyoming.
Wyoming Business Entities
The Majors Law Firm, P.C. consults on a daily basis with clients desiring to take advantage of the Limited Liability Protection afforded through the establishment of Limited Liability Companies and Corporations in the State of Wyoming.
Wyoming Close LLC and Single Member LLC
Creditor protection is one of the main reasons clients create business entities. Many state statutes only give nominal creditor protection for their business entities; however Wyoming has favorable creditor protection legislation. By way of example, the Wyoming Close LLC gives maximum protection as it mandates by statute that a creditor of a member of an LLC only has the rights of a transferee and that the charging order is the exclusive remedy by which a judgment creditor may satisfy a judgment. Wyoming Statute Section 17-29-503.
On July 1, 2010, the Wyoming Legislature revised the Limited Liability Company Act to provide that the charging order is the exclusive remedy for single member LLC’s. This revision provides additional creditor protection for single member LLC’s, not otherwise provided by other state Limited Liability Company Acts, and enhances creditor protection for Wyoming LLC’s and single member LLC’s.
Wyoming Statute Section 17-29-503. Charging order.
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On application by a judgment creditor of a member or transferee, a court may enter a charging order against the transferable interest of the judgment debtor for the unsatisfied amount of the judgment. A charging order requires the limited liability company to pay over to the person to which the charging order was issued any distribution that would otherwise be paid to the judgment debtor.
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Reserved.
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Reserved.
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The member or transferee whose transferable interest is subject to a charging order under subsection (a) of this section may extinguish the charging order by satisfying the judgment and filing a certified copy of the satisfaction with the court that issued the charging order.
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A limited liability company or one (1) or more members whose transferable interests are not subject to the charging order may pay to the judgment creditor the full amount due under the judgment and thereby succeed to the rights of the judgment creditor, including the charging order.
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This article does not deprive any member or transferee of the benefit of any exemption laws applicable to the member’s or transferee’s transferable interest.
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This section provides the exclusive remedy by which a person seeking to enforce a judgment against a judgment debtor, including any judgment debtor who may be the sole member, dissociated member or transferee, may, in the capacity of the judgment creditor, satisfy the judgment from the judgment debtor’s transferable interest or from the assets of the limited liability company. Other remedies, including foreclosure on the judgment debtor’s limited liability interest and a court order for directions, accounts and inquiries that the judgment debtor might have made are not available to the judgment creditor attempting to satisfy a judgment out of the judgment debtor’s interest in the limited liability company and may not be ordered by the court.