A Trust For Creditor Protection

Published Tuesday, November 28, 2017 at: 7:00 AM EST

Trusts come in many shapes and sizes and serve different purposes. For instance, you might set up a credit shelter trust to provide wealth for your children and grandchildren while minimizing estate taxes. Another specialized trust—the domestic asset protection trust (DAPT)—is intended to keep assets from the reach of creditors even if you're named as beneficiary of the trust. DAPTs are available in more than a dozen states.Although these trusts have been around for years, state laws that set the rules for them continue to evolve. Most state statutes allow a DAPT to be treated as a "grantor trust," meaning...

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This article was written by a professional financial journalist for new michael mcdonald and is not intended as legal or investment advice.

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