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Utility of DAPTs for asset protection?

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Forbes recently reported that Michigan joins the list of states with a new law allowing creation of DAPTs (Domestic Asset Protection Trust). 
A quick summary from the American Bar Association on DADTs can be found here.

Basically, for normal trusts, the general rule is that the settlor’s creditors can access as much of the trust as can be distributed to the trust settlor. But DAPTs are normal trusts on steroids— they allow the settlor of the trust to be a discretionary beneficiary and yet still protect the trust assets from the settlor’s creditors. Most states have exception creditors, such as child support payees. But at least one state, Nevada, disallows even child support payees from reaching assets in a DAPT. The trusts make it harder to reach assets because there is a very narrow statute of limitations, allegations of fraudulent transfer must be clear and convincing (as opposed to preponderance of evidence), and the trustee's ability to withhold payments from creditors is almost supreme (even from child support obligations as in Nevada).

Curious if anyone here has heard of these or had experience with DAPTs?


 

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