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How a Self-Settled Asset Protection Trust Shields Doctors from Malpractice

How a Self-Settled Asset Protection Trust Shields Doctors from Malpractice

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Episode 28 of Estate Planning with Fexingo dives into the self-settled asset protection trust (SAP Trust) — a powerful but often misunderstood tool for high-earning professionals. Lucas and Luna explain how a surgeon in Texas used a Nevada SAP Trust to shield $2 million in personal assets from a malpractice judgment, while still retaining access to the trust income. They break down the three key requirements: irrevocability, independent trustee, and spendthrift clause. They also compare the 19 states that currently allow domestic self-settled trusts, with a focus on Delaware, Nevada, and South Dakota. The episode explores why SAP trusts don't protect against future creditors (only pre-existing ones) and how they differ from traditional domestic asset protection trusts. Listeners learn the practical steps — from choosing the right jurisdiction to funding strategies — and the hidden tax traps, including grantor trust rules and the five-year look-back period under bankruptcy law. #SelfSettledTrust #AssetProtection #EstatePlanning #MalpracticeProtection #HighNetWorth #TrustLaw #NevadaTrusts #DelawareTrusts #SouthDakotaTrusts #IrrevocableTrust #SpendthriftClause #DomesticAssetProtectionTrust #DAPT #SAPTrust #Finance #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
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