What advantages does an Asset Protection Trust offer over other entities that protect assets, such as a Limited Liability Company or Limited Partnership?

APTs have the distinct advantage of permitting the Trustee to make distributions to or for the benefit of any one or more of the trust beneficiaries. Consequently, if a beneficiary had creditor concerns, including the grantor, the Trustee can economically benefit the beneficiary without the beneficiary receiving trust assets (for example, making a mortgage payment or paying litigation fees). An LLC or LP must make its distributions directly to its owners, instead of for their benefit, which allows creditors to collect such distributions.