Asset Protection & Legacy Planning in Utah: Advanced Trusts & Strategies to Shield Your Wealth

For many families, a basic will or revocable trust isn’t enough. If you’re concerned about protecting assets from creditors or lawsuits, caring for loved ones with special needs, or passing on a legacy that lasts generations, you’ll want to consider advanced estate planning tools. Utah law offers powerful options—if structured correctly—to help safeguard your wealth, minimize taxes, and ensure your values are carried forward.

In this article, we’ll explain:

  • What “asset protection” really means under Utah law

  • Key trusts & strategies for legacy planning

  • Whether a Utah Domestic Asset Protection Trust (UDAPT) is right for you

  • How to combine tools to build a custom plan

What Is Asset Protection & Legacy Planning?

Asset protection refers to legal strategies that limit exposure of your wealth to lawsuits, judgments, or other creditor claims. Legacy planning goes further—ensuring your assets serve your goals over time: supporting family, philanthropy, special needs loved ones, or passing wealth patiently through generations.

Utah’s advanced estate planning framework allows you to use specialized trusts to achieve both asset protection and legacy planning objectives.

Utah Domestic Asset Protection Trust (UDAPT)

One of Utah’s most powerful tools is the Utah Domestic Asset Protection Trust (UDAPT). Here’s how it works:

  • It’s an irrevocable discretionary spendthrift trust, meaning once assets are transferred in, you no longer “own” them in a legal sense.

  • You can still benefit from the trust as a discretionary beneficiary (you may get distributions, at the trustee’s discretion).

  • Creditors, under many circumstances, cannot reach the trust’s assets to satisfy judgments.

Pros:

  • Strong protection for business owners, professionals, real estate investors, and others with potential liability.

  • Helps avoid probate and assures privacy.

  • You can maintain some influence (via trustee discretion and influencing trustee choice), providing flexibility while protecting assets.

Considerations:

  • Must be properly funded; assets must be retitled or legally transferred into the trust.

  • Irrevocable: once done, cannot be easily undone.

  • Usually needs professional setup and ongoing compliance.

Other Advanced Trusts & Strategies for Legacy Planning

Depending on your assets, goals, and family situation, one or more of these trusts may make sense. Often, the best approach combines several tools:

Special Needs Trust (SNT) – Allows you to provide for a loved one with disabilities without jeopardizing their access to government benefits. Best for parents or family members with special-needs dependents.

Special Power of Appointment Trust (SPAT) – Offers protection similar to a Utah DAPT but with added flexibility, especially for those with assets outside Utah or who do not meet DAPT eligibility. Best for individuals with cross-state property or requiring a customized trust design.

Deferred Sales Trust – Enables you to defer capital gains taxes when selling a highly appreciated asset, such as real estate or a business. Best for those expecting significant gains who want flexibility in how the sale proceeds are invested or distributed.

Charitable Protection Trust – Combines charitable giving with asset protection, creating tax benefits while supporting your philanthropic goals. Best for donors who want to protect assets and leave a charitable legacy.

Summit Trust (Irrevocable Discretionary Spendthrift Trust) – A non-grantor trust under IRS rules, designed to protect assets, reduce tax exposure, and permit multi-generation wealth transfer. Best for high net-worth families interested in long-term legacy planning and minimizing estate tax exposure.

Charitable Remainder Trust (CRT) – Lets you retain income during your lifetime while the remainder goes to a charity at your death. Provides favorable tax treatment. Best for those desiring a philanthropic impact while maintaining an income stream during life.

Spousal Lifetime Access Trust (SLAT) – Provides estate tax advantages while allowing your spouse to receive income distributions. Best for married couples with substantial estates seeking both tax mitigation and access to trust benefits.

Combining Asset Protection & Legacy Tools

Often, your best plan will use multiple tools. For example:

  • A UDAPT for asset shielding + a CRT for charitable giving

  • SPAT or Summit Trust to protect wealth across generations

  • SNT paired with SLAT if you have a special-needs child and wish to maximize spousal benefits

Customizing structuring, naming trustees, timing of transfers, and planning funding are critical technical aspects that make or break effectiveness.

Utah-Specific Tips & Legal Considerations

  • Utah statute explicitly authorizes Domestic Asset Protection Trusts and sets clear rules around them. Make sure your UDAPT is drafted in compliance with those laws.

  • Trusts must be properly funded (property titled correctly, beneficiary designations updated).

  • Be aware of state income tax, possible reporting obligations, and evolving tax laws (federal/state) that may affect advanced trusts.

  • Trusts involving special needs, charitable giving, or generation-skipping may have additional regulations and IRS implications.

Take the Next Step

Advanced estate planning strategies are not one-size-fits-all. The right combination depends on your assets, your family situation, and your priorities.

If you want to protect wealth, preserve privacy, support loved ones (including those with special needs), and leave a lasting legacy, we’re here to help. Contact Cutler | Riley for a free advanced planning consultation so we can tailor a plan built around your future.