Asset Protection is the cornerstone of estate and wealth planning. It involves (1) shielding businesses and their owners from devastating lawsuits; (2) helping wealthy individuals “take chips off the table” so their hard-earned gains will not be exposed to future events and claims; and (3) incorporating best of breed estate and asset management tools to enhance the success of the overall planning. It is for risks that traditional forms of insurance can’t cover. But it is much more. A comprehensive asset protection plan considers all aspects of the client’s planning. And, in practice, there are also valuable non-protection reasons to form DAPTs, including; privacy, potential tax benefits, flexibility to modify the trust if circumstances change and avoidance of intra-family quarrels.
Limited liability companies (LLCs) usually play a key role in a crafted asset protection plan. And traditional estate planning also plays an important role. But, for a business owner, physician or executive seeking relief from worry over unanticipated and unfounded personal law suits, a well-structured domestic asset protection trust (DAPT) represents the penthouse suite for protection and estate and financial planning.