Domestic Asset Protection vs. Blockchain Trust® Asset Protection
The meaning of domestic asset protection trusts and Blockchain Trusts are different even though they might have similar functions. The difference between DAPT trust, foreign asset protection trusts and blockchain trusts are widely discussed concepts as businesses and corporations are looking for the best ways to protect their assets domestically against asset predators and creditors.
What is a Domestic Asset Protection Trust?
A domestic asset protection trust (DAPT) otherwise called self settled trust is a category of trust that allows individuals and businesses protect domestic assets from judgement creditors while enjoying the benefits and having total control over these assets. The domestic asset protection trust DAPT is a type of trust that isn’t allowed in every jurisdiction. Some states recognize domestic asset protection trusts while others don’t. Since not all states allow the formation of DAPTs, establishing domestic asset protection trusts has to be done in states that support it.
As of September 2021, about 19 states in the United States had permitted the creation of Domestic Asset Protection Trusts (DAPTs). Domestic asset protection trust states included; Alaska, Hawaii, Missouri, New Hampshire, Delaware, Michigan, Mississippi, Oklahoma, Rhode Island, Nevada, South Dakota, Utah, Ohio, Wyoming, Virginia, West Virginia, North Dakota, New Mexico and, Tennessee.
Establishing a trust provides secure mechanics for your domestic assets during your lifetime. The trust also provides asset protection for your family after you are gone. At the Blockchain International Corporate Registry Authority (BICRA), we assist with drafting irrevocable, revocable, dynasty, spendthrift, blockchain and other types of trusts.
What Are Domestic Assets?
Domestic as an independent word in this circumstance refers to the existence or occurrence of certain affairs within the confines of an individual’s own country. It is most concerned with domiciliary, home, territorial confines and not related to foreign activities. On the other hand, assets are valuable items which include properties, companies, money, chattels, resources and belongings owned by a legal entity or owned by an individual. Assets refer to any substance of measurable worth either in your personal or corporate name.
Asset means “any resource”, owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can be converted into cash”.
DOMESTIC ASSETS therefore refers to all properties, valuables and possessions of a legal entity, under the jurisdiction of a particular country. These valuables are not subject to any foreign Governmental Authority, and can be sold or confiscated without the consent of a foreign body. Domestic asset could be accounts, documents, general intangibles, chattel, equipment, inventory, investment property, proprietary rights, instruments, attached obligations and proceeds that are owned by a person, yet located (or believed to be located) within the individuals country (example United States).
It definitely excludes the stock of foreign subsidiaries but includes all amounts being owed to the borrower as well as account debtors that are located outside the United States.
Are Domestic Asset Protection Trusts Legal?
The legality of domestic asset protection trusts has been a topic of constant debate since 1988 when it was pointed out to be in conflict with US public policy. Notwithstanding, after Alaska adopted its asset protection trust statute, fifteen more states followed suit based on the fact that such policy was legal. The rationale came from the fact that it was only fair for individuals to protect their wealth from unknown predators and unwanted future creditors.
Judging from this standpoint, domestic asset protection and management is a legal step and endeavor every successful individual must take so long as you own certain valuables and properties that can be endangered or taken away from you after an unfavorable action against you or your business in the court.
Based on our example of the United States, the US Constitution, Article IV Section (1) states: “Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state” gives life to the Asset protection decision reached in every other state within the United States.
In other words, a judgment against you personally, or your company or your DOMESTIC ASSET PROTETION TRUST in one state must be AND WILL BE honored by all other states. In other words, even if you thought that you could protect your domestic assets in a DOMESTIC ASSET PROTECTION TRUST, you will be shocked to learn that any eager U.S. judge, will simply ignore Domestic Trust Laws and sign the “court order” to confiscate all your hard earned assets in the Domestic Trust.
In stark contrast, Offshore Trusts or decentralized Blockchain Trusts are prohibited from recognizing foreign judgments. Results-oriented U.S. judges have broken domestic trusts all the time, which means there is ZERO protection for your assets in a DOMESTIC ASSET PROTECTION TRUST.
Domestic Asset Protection Trust Cost
How much does a domestic asset protection trust cost?
The cost of setting up a Domestic Asset Protection Trust depends on the geographical location of the trust. i.e; the country and the DAPT state. Creating a Domestic Asset Protection Trust in the United States, can be as high as $16,000 or more, but not less than $12,000 depending.
Read also Who needs Asset Protection?
Domestic Asset Protection Trust Disadvantages
While a DAPT may be useful for wealthy individuals, it does come with a few flaws:
Dapt States in 2023 are few in number hence 100% protection of domestic assets isn’t guaranteed in all States where domestic asset are located.
1.) The trustee must do what the court wants. The DAPT is bound by U.S. jurisdiction, which means that the trustee must follow court orders. If the trustee does not follow orders, he or she can be jailed for contempt of court. This could make the trustee subject to lawsuits. While this may be unlikely, it’s certainly something to think about when choosing to set up a DAPT and is one big reason that favors offshore trusts/Blockchain Trusts for asset protection.
2.) The “full faith and credit” clause is in play. The U.S. Constitution has a clause regarding full faith and credit. This means that each state is required to recognize the judgments of other states. There is no need to retry the case each time. The creditor simply has to register the judgment, which does not deter the creditor at all. That means you’ll still likely have creditors knocking at your door.
3.) Federal courts don’t follow State law. The Constitution also has a Supremacy Clause, which means that federal courts do not have to follow State law. This means that your DAPT could be bound by federal law, which can get messy.
4.) Lack of privacy. While you may think you’re keeping a big secret from your creditors by hiding your assets in a DAPT. The truth is that there really is little to no secrecy. As a resident of the U.S., you can still be subject to subpoenas and discovery orders. Plus, each state has its own procedures without regard for the rules in other States. On top of that, the federal courts follow their own rules, so the secrecy rules in each State actually become irrelevant. There are no guarantees of privacy should you decide to set up a DAPT.
Domestic Asset Protection with a decentralized Blockchain Trust®
The first rule is, what you don’t own cannot be taken from you.
The decentralized Blockchain Trust® is an irrevocable asset protection trust that allows you to be the beneficiary but it does not fall under the jurisdiction of any country. It is established on the established on the Blockchain Network in such a way that you can use your Blockchain Trust® to transfer various assets like real estates, companies, securities, cash and business interests. With this international or offshore trust asset protection strategy, registered asset owners are able to shield their possessions against lawsuits and future creditor actions in every way.
Your own Blockchain Trust® is registered on the most trusted and efficient Blockchain platform, the Ethereum and Polygon network, making all your transactions and personal details completely confidential and inaccessible by any party.
Benefits of Domestic & International Asset Protection with your decentralized Blockchain Trust®
100% tax exemption on domestic and international assets
Swift domestic and international transactions with immediate reflections
Confidentiality and non-interference from any Government or Central Authority
Zero stress registration in less than 30 minutes
Complete domestic and international asset protection against judgment creditors and their litigation counsels
Direct and unrestricted access to your domestic and international assets
Zero dependence on Central Authorities and Government Organizations
The trustee is NOT a “Domestic Citizen” is does not need to obey to “local” laws
Perfect for Wealth Preservation and Asset Management
Cost effective establishment of your own Blockchain Trust® for only $2,999.00
Currently, records have the United States to be the most litigious country in the world. The hyper-legal activities that go on within the U.S make it difficult for anyone to stay completely out of harm’s way, let alone protect their domestic assets without the help of a Blockchain Trust®.
The Blockchain Trust® combines the benefits of the Blockchain and a domestic asset protection trust (DAPT) plus an offshore asset protection trust to give you a cost effective, confidential, tax-exempt and completely decentralized alternative. The Blockchain Trust® offers maximum asset protection to discourage creditors and asset predators from having you and your assets as a target.
Domestic Asset Protection through your own Blockchain Trust® gives you the option to legally protect your assets from the frivolous lawsuits that are trying to target you or your business. Complete enrollment and registration of your Blockchain Trust® is done in less than 30 minutes for an unbeatable price of only $2,999.00
Remember, when someone else is sued, it is a statistic. When you are sued, it becomes a nightmare. The best time to start protecting your domestic and international assets is NOW!