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Alaska; DAPT; DAPTs; trust; trust law; debtor; Uniform Voidable Transaction Act; settlor; asset protection; cook islands; UFTA; trusts and estates; debtors; creditors rights
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Full-Text Articles in Estates and Trusts
Domestic Asset Protection Trusts: A Debtor's Friend And Creditor's Foe, Nora Hood
Domestic Asset Protection Trusts: A Debtor's Friend And Creditor's Foe, Nora Hood
Brooklyn Journal of Corporate, Financial & Commercial Law
In 1997, Alaska enacted the first law in the United States legalizing Domestic Asset Protection Trusts (DAPTs), also referred to as self-settled asset protection trusts, as valid legal entities. Under traditional trust law, a debtor cannot shield assets from creditors by placing them in a trust for his or her own benefit. Alaska’s statute allowing DAPTs calls the traditional rule into question. This Note will examine use of DAPTs in the United States, including whether or not the recently amended Uniform Voidable Transaction Act would consider any transfer to a DAPT voidable per se, and discuss an approach that intends …