A UDAPT is an irrevocable trust blessed by the Utah legislature which pretty much lets you have your cake and eat it too. “Own nothing and control everything” as Nelson Rockefeller famously said.
UDAPT stands for Utah Domestic Asset Protection Trust. Utah is one of a minority of States that allow asset protection for a self-settled trust (a trust where the Settlor is also an eligible beneficiary). You can create and transfer assets to the trust, protect those assets from creditor claims, AND benefit from those assets.
Benefits of a UDAPT
- You can act as a co-trustee and manage all of the trust assets so long as another trustee makes distribution decisions. Note, at least one trustee must be a Utah resident.
- You can consult with the trustee about whether a distribution will be made
- You can veto proposed distributions
- You can name someone who can remove and replace trustees
- You can hold a power to unilaterally make changes to the trust (except to give the assets back to yourself)
- Benefit from the Trust
- You can live in home owned by the trust
- Use of trust owned property
- Receive distributions from the trust (so long as the trustee consents)
- Protection from Creditor Claims
- Immediate protection from future creditors
- 2 year Statute of Limitations for pre-existing creditors (which can be shortened to 120 days with notice to creditors).
Who should consider a UDAPT
- Anyone working in a high liability profession
- Anyone with high net-worth
- Anyone who wants to protect valuable hard earned assets (home, savings, cabin, etc.)
- Single individuals seeking asset protection
Seek Expert Advice
These are sophisticated trusts. The most expensive plan is the one that doesn’t work. You should consult with an attorney with experience to evaluate your situation and determine the best way to implement an asset protection strategy. Contact us for a free consultation.