Question 12.   Can I obtain maximum asset protection (i.e., become totally bullet-proof) by creating a domestic asset protection trust?

Answer.    We have never met a client whom we believed could become totally bullet-proof, particularly if he/she elected to only utilize a domestic asset protection trust ("DAPT"). While one can utilize only an APT, to do so involves relinquishing total control over the assets to third party trustees, and, we have found very few clients who were willing to do so.

The most common form of asset protection structure involves the use of a domestic LLC, or corporation, coupled with an APT.  However, at the present time the weakness of the domestic APT itself is the fact that there has been no litigation verifying whether or not such APT will provide the sought for asset protection. Therefore, while a properly-drafted and operated domestic APT structure is certainly far more protective than doing nothing it has not yet been determined just how viable it is as compared to a more proven offshore APT structure.

Other vehicles may also be utilized in conjunction with the APT,  all of which depend upon the client's particular family, financial and business circumstances.