2015 Top 5 States for Domestic Asset Protection Trusts
For the past six years, attorney Steve Oshins has ranked the states that offer Domestic Asset Protection Trusts (DAPTs).
The chart generally is ranked through weighted variables including fraudulent transfer standard, pre-existing torts exceptions, spousal support, child support, tax, and statutes of limitations for past and future creditors. A few changes in weighted variables are included in 2015’s rankings. These include ease of use (affidavit of solvency) and the state’s ranking as a decanting state. The latter is another report prepared by Oshins ranking states that offer trust decanting.
DAPTs are irrevocable trusts that offer increased creditor protections. These tools are not available in every state. One of the states our estate planning attorneys serve holds the same #3 position as last year: Tennessee. Of course, individuals need not reside in a state that permits DAPTs in order to take advantage of their benefits. Where are the best places to create DAPTs?
2. South Dakota
Nevada consistently places as the top state for DAPTs annually. South Dakota offers virtually the same benefits, except for creditor exceptions involving alimony, divorcing spouse, and child support claims (only at the time of asset transfer).
Mississippi only recently approved legislation that permits DAPTs, and this latest addition comes in last in the rankings. Learn more about the Mississippi Qualified Trust Disposition Act. Both Alaska and Wyoming dropped out of the Top 5; these jurisdictions remain in the Top 10. See the full Annual Domestic Asset Protection Trust State Rankings Chart.