Domestic Asset Protection Trusts
When your client receives a settlement, their asset may come at risk due to a future unexpected and catastrophic event. A domestic asset protection trust ensures their settlement and financial future are protected.
When to Use a DAPT
A domestic asset protection trust is a bank account that no one can access but the person who owns it. A DAPT should protect against financial losses from judgments, creditors, bankruptcy, divorce, business failure, and liability from accidents.
DAPTs may be especially useful for your clients who:
- Have a net worth that exceeds several hundred thousand dollars,
- Are in a higher risk profile profession,
- Have assets that may be exposed to lawsuits, or
- Believe their assets are worth protecting.
Anyone can get a DAPT to protect their assets at any time. But when a settlement is meant to cover medical care and other expenses over an injured person’s lifetime, establishing a DAPT safeguards those funds now and in the future. With the right plan and trustee, a DAPT can be especially effective for a parent or spouse caring for a person with special needs.