Domestic Asset Protection Trust (DAPT)

by Bruce Givner on May 16, 2011

Contact Givner & Kaye to establish your Domestic Asset Protection Trust (DAPT)

(310) 207-8008

A Domestic Asset Protection Trust (DAPT) is a trust document that protects an individual’s assets from creditors.  A Domestic Asset Protection Trust (DAPT) must meet five criteria to be valid:

  • Must be irrevocable;
  • Have an independent trustee (someone other than the beneficiary);
  • The trustee must reside in a state with strong asset protection laws, e.g., Nevada;
  • Contain a “spendthrift” clause restricting the transfer of  the beneficiary’s interest in the trust property before the trustee actually distributes the trust property; and
  • Is set-up in a state with strong asset protection laws (Self-Settled Spendthrift Trust).

“If a Domestic Asset Protection Trust (DAPT) is established in Nevada, a creditor has two years to challenge an individual’s asset transfer into the Domestic Asset Protection Trust (DAPT),” says Los Angeles Asset Protection Attorney Bruce Givner.  A Domestic Asset Protection Trust (DAPT), also makes it harder for a creditor to prove that an asset transfer into the Domestic Asset Protection Trust (DAPT) is a fraudulent transfer.

Assets transferred into a Domestic Asset Protection Trust (DAPT) are protected from preexisting creditors two years from the date of transfer or six months after the creditor discovers or reasonably should have discovered the asset transfer, whichever is later.  For non preexisting creditors, NAPT protects assets transferred two years after the date of transfer.

If you would like more information regarding asset protection plans or Domestic Asset Protection Trusts (DAPTs), call Givner & Kaye at (310) 207-8008.

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