Asset protection trust - sustany/dvg GitHub Wiki

An asset protection trust is a self-settled�spendthrift trust.� This means it is a�trust�that an individual creates for themselves that is protected from�creditors.� Asset protection trusts are normally found outside of the United States.�There are some basic features of an offshore asset protection trust:

• First, there is the use of a trust protector, which is an office that overlooks the�trustee.
• Second, there is an event of distress clause, which provides that the trustee must disregard any instruction from the trust protector or the�settlor�in the event of distress.
  • An event of distress is generally some judicial order to repatriate the trust assets to the United States because a�creditor�has gotten a judgment against the�beneficiary�and is trying to exercise that judgment against the�property.
• Third, there is a flight clause that authorizes the trustee to repatriate the trust assets from one�jurisdiction�to another in the event that there is a significant possibility a creditor can reach the trust property.