An Offshore Trust arrangement, often referred to as a ‘trust deed’, is the document used to record the specifics of a Trust. The Trust shifts the ownership of property to a third-party, or trustee, to be held in trust, under the terms of the Trust, on behalf of the beneficiary of that Trust.
Using this type of legal structure for the purpose of asset protection, shields the beneficiaries interests in the asset, keeping it away from, and out of reach of, potential legal threats.
An offshore trust when paired with an LLC is probably one of the best asset protection structures money can buy.
A Manager or Director of the LLC can be paired with, for example, an offshore bank account, to where the assets of the Trust can be transferred. As long as there is no criminal activity, foreign court orders will be rendered useless in trying to gain access to the account and assets held therein.
Different Types of Trusts
Asset Protection Trusts go by many different names. Whilst there are subtle differences between each name, the most important factors are the specifics of the trust itself; the corporate laws surrounding it, and the jurisdiction under which it falls, rather than how it is labeled.
Common Asset Protection Trust Names:
- Foreign Trust
- Non-Resident Trust
- International Trust
- Offshore Trust
Who Can Benefit? - An asset protection trust can benefit anyone who is looking to secure the best asset protection possible, proffered by the legal system. It is especially useful for individuals and professionals that are:
- Hedge fund managers
- Estate & Family planning
- Wealthy individuals
Anyone who does business in any high-risk occupation that has a high risk of being targeted by opportunist claims, creditors, or legal disputes, will benefit from establishing an asset protection trust.
If you want to know more, feel free to contact us.