Safe-Haven Spouse

If you are married and live in a non-community property state like Utah, part of your asset protection plan could involve a “safe-haven spouse” planning strategy. This strategy is in essence having the spouse that does not have as much risk hold and control the majority of the assets. For instance, wife’s trust could hold membership interests in an entity that owns the marital home. This has the potential to protect the residence from husband’s creditors. There are of course serious considerations that need to be discussed with a qualified attorney when thinking about this planning strategy, such as can the planning be done before there is a problem with a creditor, ensuring that any transfers do not make the husband insolvent, ensuring that the husband actually gives up control, and the like. The bottom line is that this can be a viable strategy if properly implemented.