Domestic Asset Protection Trusts

A Domestic Asset Protection Trust (DAPT) is a legal arrangement created in certain U.S. states that allows individuals to protect their assets from creditors while maintaining some control over those assets. By transferring assets into the trust, the individual can shield them from future claims or lawsuits, provided the transfer is made properly and not with the intent to defraud. DAPTs are often used for estate planning and asset protection, offering a balance between privacy, legal protection, and control. However, their effectiveness depends on specific state laws and proper management.