Asset Protection Trust (APT)

A special form of irrevocable trust, usually established offshore for the principal purposes of protecting and preserving all or part of the beneficiary wealth offshore against creditors, former spouses or other claimants. Title to the asset is transferred to a person or corporate named the trustee or trust company respectively. Generally used for asset protection it usually will be tax neutral. Its ultimate function is to provide for the beneficiaries of the Asset Protection Trust.