What is a foreign asset protection trust?

A foreign asset protection trust (FAPT) is a legal tool used to protect assets from creditors, lawsuits, and other claims. In the District of Columbia (DC), it is used to protect assets from creditors and other claimants that the trust settlor (creator) may encounter in their lifetime. An FAPT is a type of trust that is transferred outside of the United States. The trust is established in a jurisdiction that has confidential asset protection trust laws, such as the Cook Islands in the South Pacific, Belize, and Switzerland. The trust may be set up as an irrevocable trust, which means that once it is set up, the assets inside the trust are locked in and cannot be touched or used by the settlor (creator). The trust is managed by a trustee who is responsible for protecting the assets and managing the trust according to the rules set up in the trust document. In DC, FAPTs are an excellent way for those with high net worth to protect their assets from creditors and other claimants. FAPTs can be set up quickly, without any court proceedings, and the assets are protected from any judgments or claims made against the settlor. Furthermore, the assets are not subject to the laws of the DC or any other jurisdiction. The use of an FAPT is growing in popularity in the District of Columbia, as it provides protection for assets that might otherwise be lost due to litigation or other claims. An FAPT is an excellent way to protect assets from creditors and other claims while keeping them accessible in case the settlor needs to access them in the future. By establishing an FAPT, those in or near the District of Columbia have an extra layer of security to protect their assets from lawsuits, judgments, and other claims that they may encounter.

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What is a foreign asset protection trust?

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