Connecticut is the 19th state to permit self-settled asset
protection trusts, allowing individuals to transfer assets to an
irrevocable trust on or after January 1, 2020, and remain a
permissive beneficiary while removing the assets from the reach of
most of the individual’s creditors.
In addition to being a beneficiary eligible to receive
distributions in a qualified trustee’s discretion (or in some
cases, a mandatory right to receive distributions), the individual
who funds the trust (the “grantor”) can retain
substantial rights with respect to the trust, including:
- the power to veto distributions,
- the power to appoint the property at
death to individuals and organizations other than the
grantor’s estate or creditors, and