Domestic Asset Protection Trust (DAPT): A self-settled trust in which funds are held on a discretionary basis by a third-party Trustee with the Grantor typically being a beneficiary of the trust. These trusts are most commonly set up in order to mitigate taxes and penetration by a future creditor, divorcing spouse, lawsuit, or bankruptcy. Various state statutes and case law govern the effectiveness of self-settled DAPT trusts.
For more information on this topic, contact us at http://geigerlawoffice.com/contact.cfm or call (760) 448-2220 to schedule an appointment with one of our experienced estate planning attorneys. Also, check out our estate and business planning books at http://geigerlawoffice.com/reports/.
