Asset Protection Lawyer in Ft. Myers, FL
What is a domestic asset protection trust?
Several states across the U.S. have passed statues that provide asset protection of a debtor's interest in a trust. The debtor sets up the trust for their own benefit, and they capitalize on their own non-exempt assets. These types of trusts are known as domestic asset protection trusts, or DAPTs. A domestic asset protection trust, which is formally known as a spendthrift trust, is a trust that contains certain language which allows the trustee to avoid making distributions to creditors or certain beneficiaries. Some states with domestic asset protection trusts allow certain classes of creditors, like divorced spouses, to have access to an ex-spouses' DAPT. Other states have air-tight legislation, and do not allow anyone to invade a trust unless fraudulent transfers are being made. For those interested in creating a domestic asset protection trust, or have questions regarding a DAPT, please contact a Ft. Myers asset protection attorney.
Benefits of a Domestic Asset Protection Trust
Domestic asset protection trusts not only protect your assets, but offer estate planning benefits, as well. Several states believe that assets transferred into the trust are completed gifts, which means they are no longer a part of your estate for estate tax purposes. You are also permitted to use your annual gift tax exclusion and/or your lifetime applicable exclusion amount to gift to your trust. If you live in a state that does not have domestic asset protection trust laws, then it may not be beneficial for you to establish a DAPT. You may set up a domestic asset protection trust in another state, but the U.S. Constitution requires that all states honor the laws of other states. It is important to talk to a lawyer in the state in which you reside to determine which type of asset protection is right for you.
Contact The Dorcey Law Firm, PLC
There are various types of trusts to choose from that provide different forms of asset protection. The attorneys at The Dorcey Law Firm, PLC, have been helping clients select appropriate asset protection trusts since the firm's establishment. They are familiar with many different types of asset protection, and they are able to create asset protection plans for clients and their families. To learn more about how our firm may be able to help you protect your assets, call our office and schedule an appointment with one of our asset protection attorneys.