Asset Protection Trust
A self-settled irrevocable spendthrift trust under which the settlor is also a beneficiary and allowed to access trust assets. An asset protection trust is designed to shield the grantor’s assets from creditors. Asset protection trusts are typically offshore trusts settled outside of the United States because most US states do not allow the creation of asset protection trusts. However, in recent years, an increasing minority of states allow the creation of asset protection trusts, which can also be called domestic asset protection trusts.