The federal bankruptcy Court recently came out with a big ruling in the asset protection world. It’s called the “Mortensen case” or more officially known as:
Battley v. Mortensen, Adv. D.Alaska, No. A09-90036-DMD, May 26, 2011 (Original Memorandum) and July 18, 2011 (Memorandum Denying Motion For Reconsideration).
In this case Mr. Mortensen set up an Alaskan asset protection trust in 2005. He filed bankruptcy in 2009. The trust was designed to protect his assets from creditors including bankruptcy. However, one has to remember there is a connection between the Federal bankruptcy laws and the state trust laws. That is, you need to keep the Federal laws in mind when implimenting a state asset protection trust. In particular, Mr. Mortensen filed his bankruptcy without