Trusts & Estates
The Domestic Asset Protection Trust
By: Steven J. Oshins, Esq.
A Domestic Asset Protection Trust (“DAPT”) is an irrevocable trust established under the special laws of one of the jurisdictions that allow the settlor of the trust to be a discretionary beneficiary and yet still protect the trust assets from the settlor’s creditors. There are 13 or 14 such jurisdictions, depending upon whether Colorado’s limited statute includes it as a DAPT jurisdiction. If such a trust were set up under the laws of a non-DAPT jurisdiction, the general rule is that the settlor’s creditors can access as much of the trust as can be distributed to the trust settlor.
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