Using An Offshore Asset Protection Trust

Using an asset protection offshore trust and one or more bank accounts can be an excellent way for US citizens to legally and securely protect their assets and themselves from litigation for example. An asset protection offshore trust offers an individual a fair degree of personal confidentiality, privacy and asset protection from claimants such as an ex-spouse or business client for example; and if they are properly structured, offshore bank accounts can offer degrees of financial protection from potential future claims as well.

Any form of asset protection trust - whether onshore or an asset protection offshore trust - can be used to protect assets from personal or professional litigation or creditor attack. Whether established in an offshore jurisdiction or not, most assets protected by the given asset protection offshore trust for a US citizen can remain in America. The assets usually remain under the indirect control of the Settlor as well. Such an asset protection offshore trust will usually be 'irrevocable' for a set term, and during that period the settlor will not be a direct beneficiary of the trust. Depending on circumstances and best advice, many US asset protection specialists favor structuring an asset protection offshore trust in such a way so that it will get taxed as a domestic grantor trust.

If the asset protection offshore trust is created properly, any creditor or anyone suing the settlor will be unable to reach or claim the assets within the trust. If the asset protection offshore trust has been structured as an irrevocable trust for a set term, at the end of the term provided there is no current or ongoing threat, the assets can be returned to the control and direct 'ownership' of the settlor.

When it comes to the utilization of an asset protection offshore trust there are circumstances in which US citizens can benefit from properly structured offshore solutions.

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