Which of the following best describes an Asset Protection Trust?

An Asset Protection Trust is primarily designed to safeguard a person's assets from creditors. This type of trust is often used to protect properties or financial resources from legal judgments, bankruptcy, or other claims against an individual's estate. By placing assets in a trust, they are owned by the trust rather than the individual, making it more challenging for creditors to pursue these assets in case of debts or lawsuits.

When considering the other options, a trust for retirement savings refers to vehicles like IRAs or 401(k) plans designed primarily for accumulating retirement funds. A trust that eliminates estate taxes is generally not possible, as estate taxes stem from asset ownership at death, and while certain trusts can minimize tax burdens, they do not completely eliminate them. Lastly, a trust for charitable donations is typically called a charitable trust, which is specifically established to benefit charitable organizations, rather than protecting personal assets from creditors.