Protecting your assets is an important part of making sure your hard work doesn’t go unrewarded.
Unfortunately, there may be laws in your country that can threaten your hard-earned money. Asset protection strategies that involve having offshore accounts allow you to fully control your assets.
Offshore Trusts Protect You from Lawsuits
People are willing to sue over anything just to make a quick buck. When you have your assets protected in an offshore account, your money will be protected under the laws of your chosen offshore jurisdiction.
An offshore limited liability company (LLC) is set up that fully owns your offshore trust. You would set up in a favorable jurisdiction, such as Anguilla. The reason this location works well for asset protection strategies includes the following:
- Special legislation protecting your privacy
- Limits on the rights of creditors
- Strict limits on the recognition and enforcement of certain court judgments
- Logistical difficulties creditors face in foreign prosecution
Anguilla, for example, has enacted the Fraudulent Dispositions Act whereby it sets a limit of 3 years when a creditor can make a claim to void a transfer. If they cannot meet these requirements, Anguilla courts do not recognize the validity of any foreign claims against an Anguilla trust.
Normally, you are the manager of the overseas LLC. During times of legal concern, an offshore trustee, who is not under the rules of the country where the Settlor of the trust is domiciled, can manage your funds.
As a result, during times of legal trouble, you can rest easy knowing that your hard-earned assets are not available to money-grabbers.
Asset Protection Strategies to Ensure Confidentiality
An offshore trust is highly confidential. Only certain people can know what a trust contains. That usually includes the holder of the trust, the trustee or trust holding company, and the foreign bank.
This means that the information about your assets will not be available to those seeking to sue you, or perhaps even to business partners or a divorcing spouse.
Unless you commit an extreme criminal offense, it is almost impossible for anyone to get through the veil of confidentiality that an offshore trust offers. This is why such trusts are excellent asset protection strategies.
You Can Use Many Types of Properly Structured Trusts
The great thing about using an offshore trust is that you can set up almost any type of trust you want. With an LLC, you can use a revocable or irrevocable trust, determine if it is discretionary or not, and specify obligations that the trustee will have.
The purpose of a trust is to provide for the beneficiaries. That generally includes you and can also involve your family, business associates, or other necessary parties.
The most important part of all asset protection strategies is trust. It’s vital to choose a trustworthy individual or holding company to fill that role, and consider appointing a protector.
With the right trustee, offshore trusts are excellent asset protection strategies and make it difficult for creditors to take away the money you’ve worked so hard to earn.
Need help setting up an offshore trust? Talk to us.