Domestic Asset Protection Trust (DAPT)
A self-settled spendthrift trust recognized by specific state statutes.
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Overview & Purpose
A DAPT is an irrevocable, self-settled spendthrift trust recognized by statute in a limited number of states, allowing the settlor to also be a discretionary beneficiary while seeking protection from future creditors after a seasoning period.
Who May Consider It
- You are in a high-liability profession and want a defensive structure beyond insurance.
- You can establish situs in a DAPT state with a qualified trustee.
- May shield trust assets from future, unforeseen creditors after the statutory seasoning period, subject to the state's statute.
- Allows the settlor to remain a discretionary beneficiary in DAPT states.
- Does NOT protect against existing, known, or reasonably foreseeable creditors.
- Does NOT defeat child support, alimony, or federal tax liens.
- Outcomes depend on the state where any creditor litigation occurs, not just the trust's situs.
Important Trade-offs
- Requires an in-state qualified trustee and ongoing fees.
- Courts in non-DAPT states may not honor the DAPT's protections.
Relevant Assets
Only about 20 states permit self-settled DAPTs (e.g., NV, SD, DE, AK, WY).
Questions to Discuss with an Attorney
- Will my home-state courts honor a DAPT established in another state?
Related Documents
Sources & References
This article was prepared using publicly available legal and government sources. Laws change, and readers should verify current rules in their jurisdiction.
Reviewed for educational accuracy
Last reviewed: September 30, 2026 · Next scheduled review: March 2027
This article is educational information and is not legal advice. Laws vary by jurisdiction. No attorney has reviewed this material unless a named, licensed attorney is credited above.
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