Domestic asset protection trusts aren’t just used to protect assets from creditors.
Many people think of domestic asset protection trusts as nothing more than a way to commit legally allowed fraud and not pay debts. However, domestic asset protection trusts have other purposes, according to Wealth Management in “The Many Benefits of DAPTS.”
Domestic asset protection trusts can also be used as a preventive tool to protect the assets of heirs. This is an especially useful tool, if the trust beneficiaries are young and not particularly good at handling wealth.
The trusts are also useful for planning before getting married or for people planning to immigrate into the U.S. They are a good tax planning tool and offer some degree of privacy.
Do not be put off by the creditor protection aspect of domestic asset protection trusts. They have several uses from which you can benefit.
An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances and the proper use of domestic asset protection trusts.