Asset protection trust is an institution works to insulate assets from creditor attack. It is established to save and regain control over the protected assets upon the termination of the trust if there is no risk of creditor attack. Normally the trust structured in an offshore jurisdiction for a certain term of period. The person who established the trust called the ‘settlor’. It is almost impossible for the creditor to reach the assets provided the trust drafted properly and timely. In other words you can say that an asset protection trust is effective instrument to settle or discourage litigation. It keeps the proprietor of the assets very confidential.

Asset protection trusts are of two types namely, domestic and offshore. Domestic asset protection trust formed in the states of residing country. While offshore trust formed in a foreign land with different jurisdiction beyond the reach of residing country's laws. Both of them have same anti-creditor features. There are varieties of techniques to protect different categories of assets. Some are common and appropriate for everybody while others are appropriate for rich class people. There is one thing common in all asset protection trusts: they make it tough and difficult for a creditor to find or take assets. Properly drafted asset protection plan include asset protection trust and family limited partnership. In this plan anyone can legitimately put some of his assets out of the reach of creditors and still retain complete control over it. Traditional forms of asset protection techniques are gift of property, purchase of property in family member's name, squanderer provisions in life insurance contracts, etc. These are the oldest and common techniques that keep your creditor at bay.

As litigation is increasing day-by-day shielding of assets has become an important issue for rich and business class people. Asset protection trust is morally and legally right to protect one's assets from creditors, lawsuits and scams.