Asset protection for tech founders: FLPs, Wyoming DAPTs & Cayman STAR trusts

Full transcript

0:10 Hello tech founders—welcome back to the channel.

0:17 and today we’re discussing one of the most critical – but often overlooked – topics for founders: and that’s asset protection.

0:29 and non-U.S. tech founders—including digital nomads helping them navigate asset protection, tax structuring, and general counsel matters.

0:43 or own valuable intellectual property, protecting your assets is critical—and the time to do it is before there’s a problem.

0:54 the most solid onshore and offshore asset protection strategies available in 2026.

1:02 Let’s start with U.S.-based tools.

1:08 is the Family Limited Partnership—or FLP.

1:14 litigated for over 100 years under U.S. partnership law. So the FLP structures survived legal stress tests, making them one of the most proven tools for protecting wealth.

1:28 With an FLP, you can consolidate valuable assets—like equity in your startup, real estate, or crypto—under one umbrella that you control as the general partner.

1:41 But it gets even more strategic. Creditors can’t seize your FLP assets directly. In certain states, their only remedy is a charging order. That means they’re entitled to receive distributions, but only if the FLP decides to make them to the debtor-partner.

2:02 Now even if no distributions are made, the FLP still issues a Schedule K-1 to reflect each partner’s share of the income—including the debtor’s share.

2:15 If a creditor is holding a charging order, they may be assigned that income on paper, even though they don’t receive any actual distribution.

2:28 liable for taxes on income they never actually collect. This makes enforcing a charging order both risky and expensive—and that’s exactly why FLPs are such a powerful asset protection tool.

2:41 Next, Domestic Asset Protection Trusts—DAPTs. While not recognized in every state, they can be very effective in jurisdictions like Wyoming or Nevada.

2:53 For example, A Wyoming DAPT provides strong protection with a short window for creditors to file claims, no state income tax, and solid privacy laws.

3:05 You can transfer startup equity, crypto, or personal investments into a Wyoming trust while retaining some control by acting as investment adviser as long there is as an appointed qualified Wyoming trustee.

3:24 with low maintenance and strong statutes, it’s a good domestic assert protection strategy.

3:30 But, if you live in states like New York, California, or Florida, your local courts may not honor a DAPT created in a different state.

3:43 jurisdictions like the Cayman Islands or the Cook Islands.

3:46 The Cayman STAR Trust, in particular, is a great structure for U.S. and non-U.S. founders.

3:53 For example, Cayman’s STAR Trust framework is designed for high-net-worth individuals and allows you to move assets like crypto, equity or IP outside of your personal name into the trust.

4:07 Cayman courts don’t recognize U.S. judgments, and creditors face short deadlines—sometimes just one year—to bring a case. Also clients typically appoint professional Trustee companies in Switzerland or Liechtenstein to manage these types of trusts.

4:27 This setup is effective for safeguarding bank accounts, IP, crypto wallets, and other mobile assets—especially for tech founders operating globally.

4:40 Here’s the bottom line: lawsuits, divorces, unforeseen life circumstances—none of these are predictable.

4:49 plan that’s already in place. Once there’s a threat, your ability to restructure shrinks.

4:54 At Dilendorf Law, we help global founders and investors protect what they’ve built—through carefully crafted FLPs, DAPTs, offshore trusts, and customized cross-border plans.

5:07 If you have any questions about the legal planning, reach out to us for a consultation.

5:14 I’m Max Dilendorf, and I’ll see you in the next one.

A transcript of the recording, so it reads as speech rather than as prose. It explains the law in general terms and is not advice on your own situation, which turns on facts this video cannot know.