Asset Protection Trust
An Asset Protection Trust (APT) is an irrevocable trust specifically designed to protect your assets from future creditors, lawsuits, and legal judgments. By transferring assets into the trust, you create a legal barrier that makes it extremely difficult for creditors to reach your property. Domestic Asset Protection Trusts (DAPTs) are recognized in states like Nevada, Delaware, Alaska, South Dakota, and others. The trust includes spendthrift provisions, discretionary distribution standards, and a defined lookback period after which assets are fully protected. This is one of the most powerful legal tools available for preserving wealth against litigation risk.
Key Features
- Creditor and lawsuit protection
- Irrevocable asset shield
- Spendthrift provisions
- Discretionary trustee distributions
- Dual Co-Trustee structure
- Mandatory spendthrift provision — real protection against lawsuits, divorce, and creditors
- No-contest (in terrorem) clause — any challenge results in disinheritance
- Discretionary distributions — non-attachable, unpredictable payouts
- Trustee removal & replacement without court order
Questionnaire
You'll answer 11 guided questions to customize your trust document. The questionnaire takes approximately 10–15 minutes.
Who Should Use an Asset Protection Trust?
Business owners, professionals, and high-net-worth individuals who want to shield assets from future creditors, lawsuits, and legal judgments while retaining beneficial access.
Ideal For:
What's Included in Your Document Package
Every trust document purchase comes with a complete legal document package:
Complete Trust Agreement
A fully drafted trust document with all required articles, recitals, and legal provisions specific to your trust type.
Certificate of Trust
A standalone Certification of Trust that certifies the trust exists and summarizes key terms — accepted by banks, courts, and third parties without disclosing the full agreement.
Co-Trustee Resolution Template
A ready-to-use Co-Trustee Resolution template for joint decisions, administrative actions, and record-keeping.
Multi-Jurisdictional Execution
Signing and notarization instructions for U.S. (Notary Public), Canadian (Commissioner of Oaths), and international (Apostille) jurisdictions.
Asset Protection Provisions
Built-in spendthrift clauses, creditor protections, and beneficiary safeguards tailored to your trust type.
Schedule of Trust Assets
An organized Exhibit A for listing all property, financial accounts, real estate, and digital assets transferred to the trust.
How It Works
From selection to signed document in four simple steps:
Complete the Questionnaire
Answer a guided set of questions about your trust parties, beneficiaries, assets, and preferences. No legal knowledge required — we guide you through every step.
Secure Payment
Pay securely via Stripe. Your payment is processed with bank-level encryption. You can review your order before paying.
AI Generates Your Document
Our legal AI engine drafts your trust document and Certificate of Trust using the specific statutes and provisions for your trust type — typically in under 2 minutes.
Download & Print
Instantly access your completed trust document. Download, print, and execute with a notary or commissioner of oaths. Re-download anytime from your account.
How You Spend Money Out of a Private Trust
A plain-English, step-by-step walkthrough of how funds move through a private trust structured on the non-grantor model — from setup, to selling your assets in, to accessing the money for personal use. These provisions may apply to this trust type when it is set up as a private, non-grantor, control-based structure.
How the Trust Is Created
A law firm sets up the trust and appoints you as Trustee.
- A law firm establishes the private non-grantor trust on your behalf.
- The law firm appoints you (or your chosen party) as Trustee.
- The Trustee holds ALL power over the trust — bank accounts, money, investments, everything.
- Once the Grantor resigns, the Trustee becomes fully independent of the trust.
- The trust exists to benefit your named beneficiaries (e.g., children, grandchildren).
- The trust uses its own funds to provide for and care for those beneficiaries.
Selling Your Assets to the Trust — Not Mere Conveyance
You sell your already-taxed assets to the trust in a real transaction.
- Everything you currently own — business, cars, homes, jewelry, crypto, stocks — was acquired with personal, already-taxed income.
- This is NOT a "conveyance" (simply moving assets into a trust you own).
- Instead, you SELL those assets to the trust — a genuine transaction.
- Because it is a non-grantor trust, you do not own the trust itself.
Control vs. Ownership
You retain full control and benefit — without the liability of ownership.
- Ownership does not mean something belongs to you — CONTROL does.
- You can control an asset without owning it and enjoy the exact same benefits as an owner.
- You live in the home, drive the car, and use the property just as you did before.
- When you OWN an asset, you are personally liable — creditors can sue you and take it.
- When you CONTROL an asset through the trust, your personal creditors cannot reach it.
- Result: full benefit and use, without personal liability.
Creating the Debt — The Promissory Note
The trust didn't have cash, so the sale is funded with a promissory note.
- The trust starts without enough cash to buy all your assets.
- So the transaction creates debt in the form of a Promissory Note.
- The promissory note is the "consideration" that makes the sale legally valid.
- If you sold millions in assets, you effectively now hold a claim against the trust worth that amount.
The Trust Pays Its Own Expenses
Once assets are sold in, the trust operates and pays for itself.
- The trust now owns your house, your car, and your other assets.
- The trust can legally earn income and structure its affairs to defer taxes.
- The trust pays all of its own expenses — maintenance, operations, and obligations.
Spending Trust Money — The Personal Vacation Example
Personal (non-trust) spending comes out against the promissory-note debt.
- Want to take a personal vacation that has nothing to do with the trust? That is what the debt is for.
- When you sold your assets to the trust, the trust paid you with a promissory note — so the trust now owes you.
- You take money out of the trust's bank account against that debt.
- Because it is repayment of a debt you are owed — not new income — you do not pay personal income tax on those withdrawals.
Educational information only. This breakdown describes the general mechanics of how a private non-grantor trust operates. It is not legal, tax, or financial advice. Tax treatment of trust distributions and debt repayment varies by jurisdiction and individual circumstances. Always consult a licensed attorney and qualified tax advisor in your jurisdiction before establishing, funding, or taking distributions from any trust.
How to Complete This Trust
Answer each question carefully and completely. Your answers are used to generate your custom legal document. Keep the following in mind:
- Use full legal names exactly as they appear on government-issued ID.
- For addresses, include street, city, state, and zip code.
- For beneficiaries, specify the percentage each receives (all percentages must total 100%).
- For asset descriptions, be specific — include property addresses, account numbers, or vehicle VINs where applicable.
- Required fields (marked with *) must be completed before proceeding.
- You may return and edit answers before final payment.
To ensure your trust is legally valid and enforceable, the parties must be properly separated. A court may invalidate a trust — or disregard its asset protection — if one person holds roles that create an inherent conflict of interest.
Roles that MUST be separated:
- Sole Trustee & Sole Beneficiary: The same person cannot be the only Trustee AND the only Beneficiary. This merges legal and equitable title, collapsing the trust.
- Grantor as Sole Trustee (Irrevocable Trusts): In irrevocable and asset protection trusts, the Grantor should generally NOT serve as sole Trustee — this defeats asset protection and may trigger estate inclusion.
- Trustee & Beneficiary (Same Person, Sole Roles): A Trustee who is also the sole Beneficiary with absolute discretion may cause the trust to be treated as the Trustee's own property by a court.
- Grantor & Sole Beneficiary (Irrevocable): If the Grantor is also the sole Beneficiary of an irrevocable trust, creditors can typically reach the trust assets.
- Trust Protector & Trustee: The Trust Protector should be independent from the Trustee to serve as a genuine check on Trustee power.
- Witness & Beneficiary: Witnesses to the trust signing should not be beneficiaries, as this may create a conflict and is disallowed in some jurisdictions.
Recommended Role Assignments:
- Grantor/Settlor: Creates and funds the trust. Should be a different person from at least one Trustee in irrevocable structures.
- Co-Trustee 1: Manages trust affairs jointly. Should be independent from the Grantor where possible.
- Co-Trustee 2: Provides checks and balances. Must be a different person from Co-Trustee 1.
- Successor Trustee(s): Steps in if a Trustee cannot serve. Should not be the same person as the primary Trustee.
- Beneficiaries: Receive distributions. Can include the Grantor in revocable trusts, but not as sole Beneficiary in irrevocable trusts.
- Trust Protector (optional): Independent oversight. Must not be the Trustee, Grantor, or a Beneficiary.
Why this matters: If a court finds that the same person effectively controls the trust AND benefits from it exclusively, the trust may be treated as a "sham" or "alter ego," rendering it invalid. This can expose trust assets to creditors, probate, and taxation. When in doubt, consult a licensed attorney in your jurisdiction.
In-Depth Guide
An Asset Protection Trust (APT) is an irrevocable trust structured specifically to shield your assets from future creditors, lawsuits, and judgments. Domestic APTs are available in specific states (Nevada, South Dakota, Delaware). Offshore APTs in jurisdictions like the Cook Islands or Nevis provide even stronger protection.
Legal Disclaimer
Not Legal Advice. TrustApp is an online document generation platform and is not a law firm, attorney, or legal service provider. The documents generated through this platform are based on the information you provide and are intended for general informational and educational purposes only. They do not constitute legal, tax, or financial advice.
No Attorney-Client Relationship. Use of TrustApp does not create an attorney-client relationship between you and TrustApp, its owners, operators, or any affiliated party. No one associated with TrustApp is acting as your attorney.
Jurisdictional Variations. Trust laws differ significantly across U.S. states, Canadian provinces, and international jurisdictions. A document that is valid in one jurisdiction may not be recognized or may be treated differently in another. It is your responsibility to ensure the document complies with the laws of your specific jurisdiction.
Professional Consultation Required. Before signing, executing, or filing any trust document, you are strongly advised to consult with a licensed attorney, qualified tax advisor, and/or financial professional in your jurisdiction. They can review your document, advise on its suitability for your specific circumstances, and ensure proper execution and funding.
No Warranty. TrustApp makes no representation or warranty regarding the legal validity, enforceability, or adequacy of any document generated through the platform. Documents are provided "as is" without warranty of any kind. TrustApp shall not be liable for any damages arising from the use of any generated document.
Party Roles & Conflicts of Interest. It is your responsibility to ensure that the parties named in your trust (Grantor, Trustee, Co-Trustee, Beneficiary, Successor Trustee, and Trust Protector) do not serve in roles that create a conflict of interest under the laws of your jurisdiction. Certain combinations of roles may render a trust invalid or unenforceable. Consult a licensed attorney if you are uncertain about role assignments.
© 2026 TrustApp. All rights reserved.