Domestic Asset Protection Trusts Come to Michigan

Michigan recently passed an act that allows individuals to create Domestic Asset Protection Trusts ("DAPTs"), an attractive option to help people protect their assets from the claims of third party creditors. If the basic requirements of the newly adopted Michigan statute are satisfied, it also permits the trust settlor to retain certain powers and interests in the DAPT, including the right to receive distributions, while maintaining significant protection for the assets of the DAPT. This new kind of trust offers distinct advantages in terms of flexibility and protection, and can be a powerful tool to supplement your estate plan.