An offshore trust, sometimes referred to as an asset protection trust, is considered by many experts to be the strongest asset protection method when established in the proper jurisdiction.
How It Works
Assets are conveyed to the offshore trusts. You designate the trustees, settlors and beneficiaries. If you would like, you can name yourself as the only beneficiary to the trust or you can have several beneficiaries. Any trustee that is appointed must be licensed to provide trustee services in the jurisdiction of the Trust. This is important as offshore government officials thoroughly screen and regularly audit these trustees. The settler reserves the right to appoint any qualified trustee.
Advantages of an Offshore Trust
The major advantage of an offshore trust is asset protection. Through an offshore trust, assets are kept out of reach of your creditors. For example, a U.S. Judge does not have jurisdiction over foreign citizens. Local judges cannot legally compel the foreign trustee of your offshore trust to release funds to your creditor. The Cook Islands, Nevis, and Isle of Man do not recognize judgments that originate in a foreign country, such as the United States. In other words, a judgment that takes place in the United States cannot penetrate into the offshore trust. The judgment would have to occur in the jurisdiction in which the offshore Trust has been created in order to penetrate the Trust. Any litigation must be initiated in the offshore jurisdiction to reach the assets. Some offshore jurisdictions place many obstacles for those who attempt to bring any litigation to the trust. If you are interested in an offshore trust for asset protection, call Dana Law Firm today to schedule a free initial consultation.