What is a domestic self-settled trust?

A domestic self-settled trust is a type of asset protection trust created in accordance with Washington state law. This type of trust is sometimes also referred to as an "asset protection trust," "spendthrift trust," or "self-settled trust." A domestic self-settled trust is a trust in which the settlor is also the beneficiary. This means that an individual may create a trust and put their own assets in the trust. The trust then allows them to protect those assets from creditors and other types of litigation, while still allowing the settlor to benefit from the assets. The settlor can also appoint a trustee to manage the trust. The trustee can then use the trust to invest, distribute and pay bills on behalf of the settlor. In Washington, domestic self-settled trusts have specific requirements and rules to follow. These include restrictions on who may serve as the trustee, how long the trust can last, and where it must be formed. The settlor must also sign off on all transactions related to the trust. Domestic self-settled trusts offer a powerful tool for asset protection. However, it is important for individuals considering this type of trust to be aware of any applicable laws in Washington and to seek advice from a qualified attorney or financial advisor before setting up a trust.

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What is a domestic self-settled trust?

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