What is a domestic self-settled trust?

A domestic self-settled trust is a trust that is set up in the state of South Carolina to protect the assets of the grantor, or creator, of the trust from creditors or other legal proceedings. The domestic self-settled trust offers asset protection because the assets of the trust are not owned by the grantor, but by the trustee of the trust. As a result, the assets cannot be taken by creditors or other legal entities. The trust also offers tax protection, as the income or capital gains from the assets in the trust will not be taxed in the state of South Carolina. The trust can also be used to protect the grantor’s estate from creditors and other legal proceedings, but the grantor must be careful to ensure that the trust is set up correctly in order to achieve the desired asset protection. The grantor may also choose to appoint a trustee to manage the assets in the trust, as this can provide additional protection. Overall, a domestic self-settled trust is an effective way to protect the assets of the grantor in the state of South Carolina.

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