Asset protection trust (APT),
Definition of Asset protection trust (APT):
An asset protection trust is a self-settled trust in which the grantor is designated as a permissible beneficiary and allowed access to the funds in the trust account. If the APT is properly structured, its goal is that creditors won’t be able to reach the trust’s assets. In addition to providing asset protection, a domestic APT offers other benefits, including state income tax savings when situated in a no-income-tax state.
Trust established in an offshore haven which has enacted laws to protect legitimately earned (clean) money deposited there. The principal purpose of an APT is to safeguard an asset from claims against it in the home country of the depositor. It is a special form of irrevocable trust in which the title to the asset (deposit) is transferred to a trustee who manages the asset on behalf of named beneficiaries. Also called family protective trust in UK.
An asset protection trust (APT) is a financial-planning trust vehicle that holds an individual's assets with the purpose of shielding them from creditors. Asset protection trusts offer the strongest protection you can find from creditors, lawsuits, or any judgments against your estate. An APT can even help deter costly litigation before it begins, or it can influence outcomes of settlement negotiations favorably.
How to use Asset protection trust (APT) in a sentence?
- APTs offer the strongest protection you can find from creditors, lawsuits, or judgments against your estate.
- An asset protection trust (APT) is a complex financial-planning tool designed to protect your assets from creditors.
- These vehicles are structured as either "domestic" or "foreign" asset protection trusts.
Meaning of Asset protection trust (APT) & Asset protection trust (APT) Definition