APB Book Chapters

Ch. 13: The Domestic Asset Protection Trust (DAPT)

Ch. 13: The Domestic Asset Protection Trust (DAPT)

Introduction

More information about Domestic Asset Protection Trusts, including references to the major DAPT statutes, is available at http://www.assetprotectionbook.com/domestic_asset_protection_trusts.htm

DAPT Mechanics

Synopsis: Discusses the basic operation of DAPTs and cross-border issues.

Limitations of DAPTs

Synopsis: Discusses various potential flaws of the DAPT as an asset protection tool.

The potential weaknesses of DAPTs are explored in considerable additional depth at http://www.assetprotectionbook.com/domestic_APT_analysis.htm

DAPTs and Repatriation Orders

Synopsis: Discusses whether DAPTs could be subject to repatriation orders issued by the courts of non-DAPT states.

DAPTs vs. FAPTs

Synopsis: Compares strengths and weaknesses of DAPTs with FAPTs.

Other Potential Weaknesses

Synopsis: Discusses potential "out of the box" creditor attacks against DAPT structures, and possible federal law changes.

When to Use a DAPT

Synopsis: Discusses those situations when a DAPT might be useful, and to what degree.

Labels: asset protection, asset protection trust, dapt, domestic asset protection trust, dynasty trust, self-settled spendthrift trust, self-settled trust

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Ch. 12: Spendthrift Trusts and Discretionary Trusts

Ch. 12: Spendthrift Trusts and Discretionary Trusts

Basic Concepts

Synopsis: Discusses the major variants of trusts in the asset protection context.

Spendthrift Trusts

Synopsis: Discussion of spendthrift trusts and certain statutory exceptions to spendthrift provisions.

Definition: Spendthrift Trusts -- A trust that includes certain language giving the trustee wide latitude to avoid making distributions to beneficiaries where the distribution would go to a creditor, or where the trustee fears the distribution would be wasted by the beneficiary.

Definition: Domestic Asset Protection Trust (DAPT) -- A self-settled spendthrift trust formed in a U.S. state that permits such forms of trust.

More information relating to spendthrift trusts, including a sample spendthrift provision and references to opinions involving spendthrift provisions, is available at http://www.assetprotectionbook.com/spendthrift_trusts.htm

Discretionary Trusts

Synopsis: Discusses forms of discretionary trusts.

Definition: Discretionary Trusts -- A trust that allows the trustee the discretion to make or not make distributions of benefits to the beneficiary, and to make unequal distributions among all beneficiaries.

Powers of Appointment

Synopsis: Discusses the federal gift and estate tax effect of Powers of Appointment (POA).

Dynasty Trusts

Synopsis: Discusses the benefits of Dynasty Trusts for estate planning.

Definition: Dynasty Trust -- A trust formed in a jurisdiction that has either abolished the Rule Against Perpetuities (which limits the duration of trusts) or has statutorily expanded the Rule Against Perpetuities for a period in excess of 100 years.

Beneficiary-Controlled Trusts

Synopsis: Discusses the disadvantages of Beneficiary-Controlled Trusts from an asset protection viewpoint, and possible methods of mitigating those problems.

Trusts and UFTA

Synopsis: Discusses the implications of gifting to fund trusts and the fraudulent transfer laws.

Labels: asset protection, beneficiary-controlled trust, dapt, discretionary trust, domestic asset protection trust, dynasty trust, power of appointment, self-settled spendthrift trust

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Call Toll-Free 1-888-359-8851

APB Book Chapters

Ch. 13: The Domestic Asset Protection Trust (DAPT)

Ch. 12: Spendthrift Trusts and Discretionary Trusts

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1-888-359-8851