How an Offshore Trust Protects Assets from Creditors

11:04 am Uncategorized

globe crop 150x150 How an Offshore Trust Protects Assets from CreditorsThe offshore trust is a “self-settled trust” where the Settlor/Grantor and the beneficiary are the same. An Offshore or Foreign Asset Protection Trust is usually established in a country that has no reciprocal judgment agreement with the U.S. and does not impose many or any taxes on trusts created there.  A trustee is nominated by the Settlor and is either an individual who is not a U.S. citizen or a trust company with no U.S. offices, connections or affiliation in the U.S.

Generally, an Offshore Asset Protection Trust will provide for added protections through trust advisors or trust protectors. These roles are filled by individuals who cannot be perceived to be under the Settlor’s control, who have independent powers in the administration and protection of the trust and its assets, and are not beneficiaries of the trust.

An important decision in the formation and administration of an offshore trust is the proper selection of a trustee. The offshore trustee can be a bank, trust company or an attorney in another country. Generally, an Offshore Trust Plan works most effectively when the trustee is a professional who is knowledgeable, readily available, knowingly reliable, and most importantly, willing to defend the offshore trust against attacks initiated by creditors.

When properly established, an Offshore Trust will protect you and your estate from future creditors by creating sufficient roadblocks that discourage creditors from pursuing legal action.

Doing business offshore can be complicated from a legal and tax standpoint, but it can be very profitable and practical to manage.  Contact our Orange County asset protection law firm to learn more about how our offshore connections can assist you in setting up and maintaining your offshore asset protection structure.

Your California legal and financial planning experts are at your service; Contact us today.

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