Trusts · Lesson 13
Self-Settled Trusts
這一課問的是：設立人能否以自設信託保護財產免於自身債權人？
ActorActObjectStandardConsequence
Core Terminology · 7 must-know
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self-settled trust
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Settlor is also beneficiary.
自設信託。
spendthrift restriction
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Generally unenforceable against settlor's creditors.
揮霍限制。
DAPT
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Domestic Asset Protection Trust.
DAPT。
public policy
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Bar against self-protection from creditors.
公共政策。
offshore
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Offshore self-settled trusts.
海外。
Rule Sentence · the workhorse
At common law, a self-settled spendthrift trust is unenforceable against the settlor's creditors as a matter of public policy; modern Domestic Asset Protection Trust (DAPT) statutes in certain states (Nevada, Delaware, etc.) provide limited creditor protection.
Mini IRAC · build the Application
Issue. May S, the settlor of a self-settled spendthrift trust, shield trust assets from S's commercial creditors?
Rule. At common law, self-settled spendthrift trusts are unenforceable against the settlor's creditors.
Application (model). S created a self-settled spendthrift trust to protect personal assets. Because public policy bars settlors from shielding their own assets through self-settled trusts, the fact that S is both settlor and beneficiary means the spendthrift restriction does not protect S from S's creditors.
Pick the right element for each blank:
g1.
g2.
Conclusion. Therefore, S's creditors may reach trust assets at common law (subject to DAPT statutes in specific states).
Practice Drill · tap to build the rule
Drop the chips here in correct order:
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