Question: I’ve heard that Utah has a new law authorizing the use of Domestic Asset Protection Trusts (DAPTs) in Utah. Someone mentioned that a Utah-compliant DAPT can be used to protect assets from lawsuits and other claims and, at the same time, the owner of the Trust can utilize the assets for his/her own needs. If this is true, how does it work?
Answer: The new DAPT was enacted by the Utah Legislature, signed by Governor Herbert, and became law in mid-May of this (2013) year. These types of “asset protection” trusts have been available in Alaska, South Dakota, Delaware and Nevada for years but, until now, Utah has not had a law that was as “user friendly” as those other states. Now we do. Basically, the new law allows you to establish a Utah-compliant DAPT to house assets that you want to insulate from future creditors. This is not a solution if you have existing creditors who may have a legitimate claim on your assets, but if you have valuable assets (such as a home, cabin, investment account, CDs/savings, etc.) and you don’t have any reason to believe that anyone could currently have a claim to those assets, the Utah-Compliant DAPT may be a tool for you to utilize. I am currently consulting with couples and individuals about whether the DAPT is suitable for their particular needs and wants. To schedule a no-fee consultation, please call (801) 534 7434 or (801) 534 7228.