![Domestic Asset Protection Trusts Domestic Asset Protection Trusts](https://eu-images.contentstack.com/v3/assets/bltabaa95ef14172c61/blt25294a20fab63d10/6733686cb3aa2faa9afebe5f/usa-map-595x335.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
A domestic asset protection trust (DAPT) is a formidable strategy that not only helps clients legally shield assets from third-party liability, but also permits clients to be discretionary beneficiaries of their own trusts.
Asset protection trusts have a relatively short history in the United States. Prior to 1996, 18 nations provided offshore asset protection trust statutes. While Missouri amended its spendthrift trust statute in 1986 in a way that may have permitted the creation of a DAPT, the Missouri law lacked information about the statute’s intent. As such, many advisors were concerned that the Missouri law wouldn’t prove to be an effective DAPT statute.1 In 1996, Alaska passed the first DAPT legislation, followed by Delaware in 1...
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