Jon Golding looks at different types of trust that can give protection and tax benefits to beneficiaries.
An asset protection trust (APT) is a trust intended to protect assets of the settlor against unreasonable, unjustified or greedy creditors or other persons.
An APT is a trust, but the settlor remains the beneficiary whether having a life interest or other interest in possession or a reversionary interest, so they still hold a role in the control of assets. The trust and its assets are often located offshore so that the trustees and the laws governing the trust are different from those where the settlor resides. The jurisdiction of the APT is often a tax haven or low-tax jurisdiction, such as the Caribbean island of Nevis, which is particularly good for protecting wealth in certain divorce situations.
Another important feature often inserted into an APT is the power to change the governing law so that
