Orange County Estate Planning Attorney Details Reasons for Offshore AccountsFebruary 21, 2012 9:27 pm Asset Protection, Estate Planning, Foreign Asset Protection, Offshore Trusts
A number of news articles have sprung up lately regarding offshore bank accounts, investments and trusts due to the disclosure by GOP presidential candidate Mitt Romney about his Cayman Islands financial accounts. A recent SmartMoney.com article took a look at two reasons wealthy Americans seek offshore asset protection, including:
Litigation risk – mitigating litigation risk is a primary reason for investing and banking offshore. Wealthy individuals will likely encounter more lawsuits than the average American, and U.S. courts have no overseas jurisdiction to enforce judgments.
Political risk – one wealth manager noted that many wealthy clients want diversification protection from U.S. governmental policies and banking systems, saying that the last few years have shaken confidence in our system.
As California asset protection goes, an offshore trust is a great choice for those looking to keep their liquid assets protected in the event of lawsuits (such as malpractice). An offshore trust can be more powerful than a simple offshore account because it can harbor liquid assets like a regular bank account, but it can also safeguard intellectual property and other types of assets that an offshore account cannot.
Those with large estates and professionals who are at greater risk of being sued due to the nature of their occupation are encouraged to look at offshore trusts as a part of their California estate plan. If you’d like to protect your assets and have considered offshore accounts, consult with an Orange County estate planning attorney to determine if an offshore trust is a good fit for your estate.
Let our Costa Mesa law offices help you get started by contacting us today.