DOMESTIC ASSET PROTECTION TRUST AGREEMENT

TABLE OF CONTENTS

1. Establishment and Governing Law
2. Definitions
3. Trust Property and Transfers
4. Irrevocability and Settlor's Retained Interests
5. Spendthrift and Asset Protection Provisions
6. Distributions
7. Trustee Provisions
8. Fraudulent Transfer Protections
9. Exceptions to Creditor Protection
10. Tax Provisions
11. Amendment and Termination
12. General Provisions
13. DAPT State Comparison Reference
14. Execution

ARTICLE I: ESTABLISHMENT AND GOVERNING LAW

Section 1.1 Trust Name

This Trust shall be known as the [SETTLOR NAME] Asset Protection Trust (the "Trust").

Section 1.2 Settlor

Settlor:
Name: [FULL LEGAL NAME]
Address: [ADDRESS]
Date of Birth: [DATE]
State of Domicile: [STATE]

Section 1.3 Trustee

Trustee:
Name: [TRUSTEE NAME — must be individual or institution located in DAPT state]
Address: [ADDRESS IN DAPT STATE]
Phone: [PHONE]

Section 1.4 Successor Trustee(s)

First Successor Trustee:
Name: [NAME]
Address: [ADDRESS IN DAPT STATE]

Second Successor Trustee:
Name: [NAME]
Address: [ADDRESS]

☐ Corporate trustee in the DAPT state designated as final successor

Section 1.5 Governing Law

This Trust shall be governed by and construed in accordance with the laws of the State of [DAPT STATE], specifically:

☐ Nevada — NRS Chapter 166 (Spendthrift Trusts)

☐ Delaware — 12 Del. Code §§ 3570-3576 (Qualified Dispositions in Trust Act)

☐ South Dakota — SDCL 55-16 (Asset Protection Trusts)

☐ Alaska — AS 34.40.110 (Alaska Trust Act)

☐ Wyoming — WY Stat. § 4-10-510 et seq.

☐ Ohio — ORC § 5816.01 et seq. (Legacy Trust Act)

☐ Tennessee — TCA § 35-16-101 et seq. (Tennessee Investment Services Act)

☐ Other: [STATE AND STATUTE CITATION]

Section 1.6 Situs of Trust

The situs and place of administration of this Trust shall be [CITY, DAPT STATE]. At least one Trustee must at all times be an individual resident of, or an institution authorized to act as trustee in, the DAPT state.

Section 1.7 Effective Date

This Trust shall become effective upon execution by the Settlor and acceptance by the Trustee on [DATE].

ARTICLE II: DEFINITIONS

"Beneficiary" means the Settlor and any other person designated to receive distributions, as listed in Section 6.1.

"DAPT State" means the state whose laws govern this Trust as selected in Section 1.5.

"Qualified Disposition" means a transfer of property to this Trust that meets the requirements of the DAPT State's statutes.

"Trust Advisor" means the person, if any, appointed under Section 7.5 to direct or advise the Trustee on certain matters.

"Distribution Advisor" means the person, if any, appointed under Section 7.6 to direct discretionary distributions.

ARTICLE III: TRUST PROPERTY AND TRANSFERS

Section 3.1 Initial Trust Property

The Settlor hereby transfers to the Trustee the property described in Schedule A attached hereto (the "Initial Trust Property"), receipt of which is acknowledged by the Trustee.

Section 3.2 Additional Transfers

The Settlor or any other person may transfer additional property to the Trust at any time. Each additional transfer shall constitute a separate "Qualified Disposition" subject to the DAPT State's applicable statute of limitations.

Section 3.3 Solvency Affidavit

At the time of each transfer, the Settlor shall execute a Solvency Affidavit in the form attached as Schedule B, attesting that:

(a) The Settlor is not rendered insolvent by the transfer;

(b) The Settlor does not intend to defraud any creditor;

(c) The Settlor is not aware of any pending or threatened claim or litigation;

(d) The Settlor retains sufficient assets outside the Trust to pay all known debts and obligations as they become due.

ARTICLE IV: IRREVOCABILITY AND SETTLOR'S RETAINED INTERESTS

Section 4.1 Irrevocability

This Trust is irrevocable. The Settlor may not revoke, modify, or terminate this Trust except as expressly provided in Article XI.

Section 4.2 Settlor's Retained Powers

The Settlor retains the following limited powers, none of which shall constitute a power to revoke:

(a) The power to veto a proposed distribution (but NOT the power to direct distributions);

(b) A testamentary special power of appointment over Trust assets in favor of the Settlor's descendants (excluding the Settlor, the Settlor's estate, creditors of the Settlor, and creditors of the Settlor's estate);

(c) The right to receive income or principal distributions at the Trustee's absolute discretion as a permissible beneficiary;

(d) The right to replace the Trustee with a successor Trustee who is not a "related or subordinate party" within the meaning of IRC § 672(c).

ARTICLE V: SPENDTHRIFT AND ASSET PROTECTION PROVISIONS

Section 5.1 Spendthrift Provision

No beneficiary shall have the power to anticipate, assign, pledge, or encumber any interest in the Trust, nor shall any interest in the Trust be subject to the claims of any creditor, to attachment, execution, or other legal process.

Section 5.2 Self-Settled Spendthrift Protection

Pursuant to the laws of [DAPT STATE], the spendthrift protections of Section 5.1 shall apply to the Settlor's interest in the Trust to the extent permitted by the DAPT State's statutes, provided that each transfer to the Trust constitutes a Qualified Disposition.

Section 5.3 Creditor's Exclusive Remedy

A creditor's exclusive remedy with respect to distributions from this Trust shall be limited to an order from a court of competent jurisdiction directing the Trustee to make distributions to or for the benefit of the creditor, to the extent such remedy is available under the DAPT State's law.

Section 5.4 Statute of Limitations for Creditor Claims

Claims by creditors to avoid a Qualified Disposition must be brought within the applicable limitations period under the DAPT State's law:

Section 5.5 Burden of Proof

Any creditor seeking to avoid a Qualified Disposition must prove by [clear and convincing evidence / a preponderance of the evidence — per DAPT State law] that the transfer was made with the intent to defraud that specific creditor.

ARTICLE VI: DISTRIBUTIONS

Section 6.1 Beneficiaries

The following persons are beneficiaries of the Trust:

(a) Primary Beneficiary: [SETTLOR NAME] (the Settlor)

(b) Additional Beneficiaries:
- [NAME] — [RELATIONSHIP]
- [NAME] — [RELATIONSHIP]
- [NAME] — [RELATIONSHIP]

(c) Remainder Beneficiaries: [NAMES OR CLASS DESCRIPTION, e.g., "Settlor's then-living descendants, per stirpes"]

Section 6.2 Discretionary Distributions

The Trustee, in the Trustee's absolute and uncontrolled discretion, may distribute income and/or principal to or for the benefit of one or more beneficiaries, taking into account:

(a) The beneficiary's health, education, maintenance, and support needs;

(b) The beneficiary's other available resources;

(c) The tax consequences of the distribution;

(d) The impact on the Trust's asset protection features.

Section 6.3 Restriction on Distributions to Settlor

The Trustee shall not be required to make any distribution to the Settlor. The Trust instrument does not require that any part of the Trust income or principal be distributed to the Settlor. Distributions to the Settlor are entirely within the Trustee's sole discretion.

Section 6.4 Distributions Upon Creditor Claims

If the Trustee has knowledge that a creditor has made or is likely to make a claim against the Trust, the Trustee shall exercise extreme caution in making distributions and may suspend distributions to the affected beneficiary pending resolution of the claim.

ARTICLE VII: TRUSTEE PROVISIONS

Section 7.1 Acceptance

The Trustee accepts the trust and agrees to administer it in accordance with the terms hereof and applicable law.

Section 7.2 Powers of Trustee

The Trustee shall have all powers granted under [DAPT STATE] law and the Uniform Trust Code, including but not limited to the power to:

(a) Invest and reinvest Trust assets;

(b) Buy, sell, lease, and manage real and personal property;

(c) Borrow funds and encumber Trust property;

(d) Employ professionals and delegate investment authority;

(e) Make distributions as provided in Article VI;

(f) Establish sub-trusts for beneficiaries.

Section 7.3 Trustee Compensation

The Trustee shall be entitled to reasonable compensation as agreed upon in writing or, absent agreement, as provided by the DAPT State's law.

Section 7.4 Trustee Removal and Replacement

The Settlor may remove a Trustee and appoint a successor Trustee, provided that:

(a) The successor Trustee is not a "related or subordinate party" to the Settlor under IRC § 672(c);

(b) At least one Trustee is an individual resident of, or institution located in, the DAPT State.

Section 7.5 Trust Advisor (Optional)

☐ The Settlor hereby appoints [NAME] as Trust Advisor with authority to:

☐ Direct investment decisions

☐ Approve or veto trust distributions

☐ Add or remove beneficiaries (excluding the Settlor and the Settlor's creditors)

Section 7.6 Distribution Advisor (Optional)

☐ The Settlor hereby appoints [NAME] as Distribution Advisor with authority to direct distributions among the beneficiaries in such amounts and at such times as the Distribution Advisor determines.

ARTICLE VIII: FRAUDULENT TRANSFER PROTECTIONS

Section 8.1 Compliance with UVTA

The Settlor represents and warrants that each transfer to this Trust:

(a) Is not made with actual intent to hinder, delay, or defraud any creditor;

(b) Does not render the Settlor insolvent under the balance-sheet test or the equitable insolvency test;

(c) Is not made in contemplation of incurring debts beyond the Settlor's ability to pay;

(d) Is voluntary and not made under duress or undue influence.

Section 8.2 Badges of Fraud Avoidance

The Settlor acknowledges awareness of the UVTA badges of fraud and confirms that:

☐ The transfer was not concealed from creditors

☐ The Settlor retained adequate assets for personal needs

☐ The transfer was not made shortly before or after a substantial debt was incurred

☐ The Settlor was not threatened with litigation at the time of transfer

☐ The transfer was not of substantially all of the Settlor's assets

Section 8.3 Record Keeping

The Trustee shall maintain a complete record of all transfers to the Trust, including:

(a) Date of transfer;

(b) Description and value of property transferred;

(c) Copy of the Solvency Affidavit executed at the time of transfer;

(d) Financial statement or net worth summary of the Settlor as of the transfer date.

ARTICLE IX: EXCEPTIONS TO CREDITOR PROTECTION

Section 9.1 Statutory Exceptions

The Settlor acknowledges that the following claims may NOT be barred by the DAPT, depending on the DAPT State's law and applicable federal law:

(a) Child support and alimony obligations — Most DAPT states except Nevada carve out family support obligations;

(b) Pre-existing tort claims — Claims arising before the transfer date;

(c) Federal tax liens — The IRS is not bound by state asset protection trust laws;

(d) Federal bankruptcy claims — 11 U.S.C. § 548(e) provides a 10-year lookback period for self-settled trust transfers;

(e) Claims for fraudulent transfers — Transfers made with actual intent to defraud;

(f) Property settlement in divorce — Several states exclude marital property claims;

(g) Claims by persons who suffered death, personal injury, or property damage caused by the Settlor on or before the date of the Qualified Disposition.

Section 9.2 Federal Bankruptcy Limitation

WARNING: Under 11 U.S.C. § 548(e)(1), if the Settlor files for bankruptcy within 10 years of a transfer to a self-settled trust, the transfer may be avoided by the bankruptcy trustee regardless of state DAPT protections. This federal lookback period significantly limits DAPT protections in bankruptcy.

Section 9.3 Full Faith and Credit Risk

ARTICLE X: TAX PROVISIONS

Section 10.1 Grantor Trust Status

This Trust is intended to be treated as a "grantor trust" for federal income tax purposes under IRC §§ 671-679. All items of income, deduction, and credit shall be reported on the Settlor's individual income tax return.

Section 10.2 Tax Reimbursement

The Trustee, in the Trustee's discretion, may reimburse the Settlor for income taxes paid by the Settlor that are attributable to Trust income. Such reimbursement shall not be mandatory and shall be exercised only if the Trustee determines it will not jeopardize the Trust's asset protection features.

Section 10.3 Estate Tax Considerations

The Settlor acknowledges that assets of a DAPT may or may not be included in the Settlor's gross estate for federal estate tax purposes depending on the powers retained and the applicable law.

ARTICLE XI: AMENDMENT AND TERMINATION

Section 11.1 Limited Power of Amendment

☐ The Trust Advisor may modify administrative provisions of the Trust, provided no amendment shall:

(a) Make the Trust revocable;

(b) Add the Settlor's estate, the Settlor's creditors, or the creditors of the Settlor's estate as beneficiaries;

(c) Reduce or eliminate the spendthrift protections;

(d) Change the governing law to a non-DAPT state.

Section 11.2 Termination

This Trust shall terminate upon the first to occur of:

(a) Distribution of all Trust assets;

(b) The date specified by the Settlor: [DATE OR EVENT, if applicable];

(c) The expiration of the applicable rule against perpetuities (if any) under DAPT State law.

ARTICLE XII: GENERAL PROVISIONS

Section 12.1 Entire Agreement

This Trust Agreement constitutes the entire agreement regarding the Trust and supersedes all prior understandings.

Section 12.2 Severability

If any provision is held invalid, the remainder shall continue in full force and effect.

Section 12.3 Notices

All notices shall be in writing and delivered to the addresses set forth herein or such other address as a party may designate.

Section 12.4 No Contest Clause

If any beneficiary contests the validity of this Trust or any of its provisions, such beneficiary's interest shall be reduced to the minimum required by applicable law.

Section 12.5 Jurisdiction and Venue

The exclusive jurisdiction and venue for any dispute arising under this Trust shall be the courts of [DAPT STATE].

DAPT STATE COMPARISON REFERENCE

EXECUTION

SETTLOR:

I, the undersigned Settlor, hereby establish this Domestic Asset Protection Trust and transfer the Initial Trust Property described in Schedule A to the Trustee.

Signature: [________________________________]
Printed Name: [________________________________]
Date: [__/__/____]

TRUSTEE ACCEPTANCE:

I, the undersigned Trustee, hereby accept the trust and agree to administer it in accordance with its terms and the laws of [DAPT STATE].

Signature: [________________________________]
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

ACKNOWLEDGMENT

STATE OF [DAPT STATE]
COUNTY OF [COUNTY]

On this [__] day of [__________], [____], before me, a Notary Public, personally appeared [NAMES], known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities.

WITNESS my hand and official seal.

Notary Public: [________________________________]
My Commission Expires: [__/__/____]

SCHEDULE A — INITIAL TRUST PROPERTY

[Describe all property being transferred to the Trust, including real property, financial accounts, securities, and other assets. Attach additional pages as necessary.]

SCHEDULE B — SOLVENCY AFFIDAVIT (Template)

I, [SETTLOR NAME], being duly sworn, state under penalty of perjury:

1. I am transferring the property described above to the [TRUST NAME] on [DATE].

2. After giving effect to this transfer, I am solvent. My total assets exceed my total liabilities.

3. I am not making this transfer with the intent to hinder, delay, or defraud any creditor.

4. I am not aware of any pending or threatened litigation, claim, or judgment against me.

5. I am not contemplating filing for bankruptcy.

6. I retain sufficient assets outside the Trust to pay my debts as they become due and to maintain my standard of living.

Summary of Financial Condition After Transfer:

Signature: [________________________________]
Date: [__/__/____]

Subscribed and sworn to before me on [__/__/____].

Notary Public: [________________________________]

Sources and References

• NRS Chapter 166 — Nevada Spendthrift Trust Statutes
• 12 Del. Code §§ 3570-3576 — Delaware Qualified Dispositions in Trust Act
• SDCL 55-16 — South Dakota Domestic Asset Protection Trust
• AS 34.40.110 — Alaska Trust Act
• 11 U.S.C. § 548(e) — Bankruptcy Self-Settled Trust Exception (10-year lookback)
• Uniform Voidable Transactions Act (UVTA) — Uniform Law Commission (2014)
• ORC § 5816.01 et seq. — Ohio Legacy Trust Act (2013)
• TCA § 35-16-101 et seq. — Tennessee Investment Services Act of 2007
• WY Stat. § 4-10-510 et seq. — Wyoming Qualified Spendthrift Trust