This content was created by MARK KOHLER. This content was uploaded by MARK KOHLER. This is a YouTube video titled "What is a DAPT (Domestic Asset Protection Trust) | Mark J Kohler | Tax & Legal Tip" (created 2015-03-17) in which Mark Kohler presents a short tax and legal tip explaining Domestic Asset Protection Trusts (DAPTs). Kohler (the sole speaker) defines a DAPT as a self-settled trust with a third‑party trustee, explains its tax treatment (income flows through to the grantor’s 1040 as a defective trust), notes that DAPTs are codified in a dozen-plus states, and discusses typical use cases and limitations (good for primary residence and investment accounts, less suitable for rentals/businesses). He also gives calls-to-action to visit his website, subscribe to newsletters, watch related videos, and follow his channels.
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Hi there, Mark Kohler here with the two minute tax and legal tip. Let's talk about the DAPT or Domestic Asset Protection Trust. Now these are getting more and more popular and are an incredible asset protection tool. First let me explain what they are. They are a trust that are self settled. You create it, you don't have to file it with the state, county, city, anything like that. It's a trust agreement where you have a third party trustee and you as the beneficiary get to use the property held by the Domestic Asset Protection Trust. It doesn't create any extra tax return and it's considered a defective trust in the eyes of the irs. Meaning everything in the trust and the income just flows through to you on your 1040. Now why would you use such a trust like this? Well, well the trust gives you incredible maximum asset protection for the assets held by the dap. The longer the assets are in the dapt, the better the protection. Now they are codified or on the statute or books of twelve states or more now and no matter what state you're in, you can always execute a DAPT and then put your property into it. Now the strength of the DAPT will vary depending on what state you're in or how far away you are from one of these Domestic Asset Protection Trust states. But for many of you that have a personal residence with a lot of equity in it and the homestead exemption is poor, the DAPT is a great tool. I don't particularly like the DAPT for rental properties or businesses. It's great literally for an investment account or your primary residence. So think about it. If you need asset protection, the DAPT could be the perfect fit for you. If you thought that information was amazing and helpful. I have so much more to share with you. Please look at the links below and head to my website markjkohler.com you can subscribe to my weekly newsletter. Check out my weekly radio show. I have my online videos for tax and legal strategies that'll save you thousands. Ways to learn QuickBooks with my fun videos online and also if you enjoyed it, please please leave a comment and give it a like and follow me on YouTube. I promise that these videos will change your life. Thanks so much.
