The Wall Street Journal and other sources reported that the new bankruptcy law protects property held in domestic asset protection trusts. My understanding is that the new law ( and I haven’t read it) does not mention domestic asset protection trust. An amended was proposed to specifically deny protection of these trust assets in bankruptcy. The amendment was defeated. By defeat of the amendment, the Senate expressed its intent not to include in the debtor’s bankruptcy estate the beneficial interest in a properly formed domestic asset protection trust. I have not seen anything to suggests that these trust would be protected from the bankruptcy trustee’s allegations of fraudulent transfer, or that a trust reserving excessive control to the debtor (as most trust do) would not be included in bankruptcy estate property. The status of asset protection trust under the new bankruptcy law is more complex than it appears to be in the newspapers.