The article discusses the evolution and implications of asset protection trusts (APTs) in the United States, contrasting them with traditional trust law. It critiques the traditional rule that allows creditors to reach the assets of self-settled trusts, arguing that this rule is theoretically unsound as it disregards the rights of other beneficiaries. The article explores the development of offshore APTs and recent domestic legislation in states like Alaska and Delaware that permit APTs. It also examines the role of fraudulent transfer laws and suggests that APTs should be respected under certain conditions, proposing limitations to prevent abuse.
documents/EFTA01116869.pdf
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