A new Utah law taking effect May 14, 2013 will provide some of the strongest options in the country for those looking to shield assets from creditors or predatory litigation. The Domestic Asset Protection Trust (DAPT) is a significant improvement over existing law.
Utah is technically not new to the asset protection game — it has had a law allowing for self-settled trusts with some creditor protection on the books since 2003. The protection provided by the statute, however, was subject to so many restrictions and exceptions practitioners rarely, if ever, relied on it. The 2013 General Session of the Utah Legislature saw the enactment of a new domestic “Asset Protection Trust” statute to not only address the deficiencies of the 2003 law, but to also authorized the creation of trusts with such significant asset protection features that Utah should now be considered among the best jurisdictions in the nation for self-settled spendthrift trusts. The new statute will replace Utah Code Annotated 25-6-14 and is referred to the DAPT law.
In recent years, Nevada, South Dakota, Alaska and Delaware have largely been considered the states of choice in this area. Utah’s new law, however, should earn it an invitation into the upper echelon of asset protection trust jurisdictions. Following are some of the features of the new DAPT law, set to take effect on May 14, 2013.
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