Offshore Trusts: Community Property Vanishes in a Trust

3:34 pm Uncategorized

Creating an offshore trust make some major changes in how the assets therein are protected and managed.

  • The Assets you place in an offshore trust will not be in your name anymore — they will be in the name of the trust and controlled and managed not by the grantor (you) but by the trustee. The trustee can be an individual or a banking institution based upon your personal needs.
  • In most cases, the trustee will not have the power to make decisions about the assets held within the trust without your go ahead, but you should always advise your California asset protection lawyer of any changes you wish to make before moving forward — it could be that he counsels you not to make the move.
  • An offshore trust will take the assets from being communal property between you and your spouse since the trust in which they are held will be the entity named as the owner of the assets. This means that as the grantor of the trust, the assets (while not technically in your name) are no longer accessible to the spouse you are divorcing.
  • BEWARE that you can’t decide after divorce has been decided upon to stash a what you feel is rightfully yours in an offshore trust. You must have created the trust while the marriage is still legally binding and before anyone is served with divorce papers.

If you have an interest in an offshore trust you will want to discuss it with a California offshore trust attorney who can advise you as to which kind of trust suits your needs best. Always consider the needs of your loved ones and yourself when you decide on a trust; it can be a phenomenal way to protect what is rightfully yours in the event of malpractice, predatory creditors, and much more.

Contact us today for individualized planning strategies to meet your unique needs.

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