What is a domestic asset protection trust?

A domestic asset protection trust (DAPT) is a legal tool used in Tennessee to protect assets from creditors. A DAPT is a trust created in the state of Tennessee that allows a person to place their assets into the trust. When the assets are in the trust, they are protected from creditors. This means that if a person has a judgment against them, the assets inside the trust are not accessible to the creditor. The trust is created for a specific purpose, that is, to protect the assets it holds from creditors. The trust can be used to shield assets from claims by current or future creditors, even after death. When a person creates a trust, they become the grantor of the trust, and the trust becomes the beneficiary. The trust is managed by a trustee. The trust can include anything that is considered to be an asset—stocks, real estate, or other possessions. In order to be successful, the trust must be irrevocable, meaning that the grantor cannot change the trust terms once they have been established. If the trust is revoked, the assets will revert back to the grantor and no longer be protected from creditors. The trust is a powerful tool available to people in Tennessee who want to protect their assets from creditors. It is important to note that DAPTs are only applicable in Tennessee and not other states. By creating a DAPT, the grantor is able to ensure their assets are secure, safe from creditors, and available to their beneficiaries.

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What is a domestic asset protection trust?

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