Self-Settled Asset Protection Trust Upheld By Delaware Court

Originally posted to Forbes.com

Case May Provide A Roadmap to Better Planning

A Delaware court (by the Magistrate in Chancery) recently upheld the validity of a domestic asset protection trust (DAPT). In the Matter of the CES 2007 Trust, C.A. No. 2023-0925-SEM. The claimant sought to pierce the trust to reach assets held in limited liability companies (LLCs) and the Court refused. The Court found that the trust met the requirements of Delaware law to qualify as an asset protection trust and should be respected. This is a big deal! This case provides you with a roadmap of many dos and “don’ts” in pursuing this type of planning.

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