Senators Steele and Bray have introduced SB 56 which would permit the creation of legacy trusts in Indiana. Legacy trusts (pdf) appear to be a device for creating and maintaining dynastic wealth and protecting the assets from creditors of the trust beneficiaries. These trusts can last indefinitely (the Rule Against Perpetuities is suspended for such trusts) and receive significant input about management of the assets from the beneficiaries.
This is not my area of the law, so maybe someone can offer better insights, but I don’t understand the public policy that is served by having wealth controlled by the dead hand of our ancestors or by allowing individuals to enjoy the benefits of wealth while limiting the ability of creditors to obtain payment for debts that are due and owing for goods and services that have been provided.
Since when is legislation about serving public policy? This legislation serves to allow those with power to keep it.
You got it, Ben. I have done some wills and estates. When we take a 40,000 foot view of our legal and economic system, we seek to promote “bargained for exchanges,” and monetary exchanges which provide “new value.” We give gifts the lowest protection from other creditors and priority.
A bequest from a will or value devolved from one’s parents or ancestors is a gift to those fortunate to have been born to the gift giver. It is in any sense, a gift. Yet why does our legal system give them a different standard of protection? More new value would be created if the gifts of inheritance were broken up purchased by individuals and entities that would use the assets more efficiently.
Dog, I also see that this bill to enshrine monarchy in the economic system provides immunity for the trustees and advisors. It is a bill only the extremely wealthy, lawyers, and financial planners could love. Most odious.