What is a domestic self-settled trust?

A domestic self-settled trust is a legal arrangement used in asset protection law in Michigan. It allows a person, known as a ‘Settlor’, to transfer some of their assets to a trust, while still retaining control over the assets. The Settlor is also the beneficiary of the trust, meaning that they can benefit from the assets held inside the trust. The trust is intended to protect the Settlor’s assets from creditors and other judgment-holders, should they ever make an attempt to seize the assets. The trust is formed with the Settlor’s own assets, so it is referred to as a ‘self-settled trust’. The trust is usually set up in a way that allows the Settlor to benefit from the assets while still affording them protection from creditors. For example, the trust may include certain ‘spendthrift’ provisions that stipulate that creditors cannot access the assets in the trust. The trust is typically managed by a ‘Trustee’, who is typically a lawyer or a financial professional, who is appointed by the Settlor. The Trustee is responsible for managing the trust and making sure that the Settlor’s wishes are carried out. The trust is regulated by the Michigan Uniform Trust Code, which ensures that the trust is set up and maintained legally and that the Settlor’s rights are protected. Overall, a domestic self-settled trust is a legal arrangement used in asset protection law in Michigan that allows a Settlor to protect their assets from creditors and judgment-holders by transferring them to a trust. The trust is regulated by the Michigan Uniform Trust Code and typically managed by a Trustee appointed by the Settlor.

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What is a domestic self-settled trust?

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