Domestic Asset Protection Trusts (DAPTs) may now be established in states which recently enacted favorable legislation ensuring special protection from creditors for Trust beneficiaries.

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States which now favor DAPTs are Alaska, Colorado, Delaware, Missouri, Nevada and Rhode Island.

Usually, a DAPT must comply with the following requirements:

• The trust must be irrevocable and spendthrift.
• At least one resident trustee must be appointed.
• Some administration of the trust must be conducted in respective state.
• The settlor cannot act as a Trustee.