How You Can Protect Your Assets With an Offshore Trust

With so much economic doom and gloom surrounding us, it makes sense to batten down the hatches and protect your assets. If your assets are scattered about and are not protected, your liabilities could be laid wide open and your financial situation and personal security could be put at risk. However, an offshore trust can be used as an asset protection strategy to rid high net worth individuals of asset protection worries.

What is an offshore trust and what can it do for me?

An offshore trust is similar to an onshore trust – but it is held at an offshore financial centre and has the benefit of greater asset protection than onshore trusts.

An offshore trust is an arrangement entered into by a person or group - the “Trustee,” and a chosen person or group of people - the “Settlor,” by which provisions are made in a legal and binding for - the “Deed of Trust”. Offshore trusts hold the title to assets, funds and / or to property and manage these assets in accordance with the deed of trust to provide offshore trust benefits and distributions to a person or group - the “Beneficiaries” - of the trust funds. The trustee and / or the offshore trust company entrusted with the management of the trust are legally bound to uphold the written agreement, and they agree to the requirements set out by the deed of trust. Once set up, offshore trusts can be used to protect your assets and ensure your financial security now and in the future.

Some of the ways offshore trusts can protect your assets:

•Offshore trusts are structured to take your every liability into account and protect you, your estate and any heirs from income, capital gains and estate and inheritance tax

Protection of real estate or large sums of money by removing your personal liability so no one can attack your assets through you in the event of, for example, a divorce, bankruptcy or unjustifiable legal action

Any properties held within an offshore trust are protected from the complicated probate process after death

Assets to be left to many family members can be structured within an offshore trust to ensure that these members receive an ongoing income from all familial assets

When you die, your assets will be kept private to protect your privacy and that of your descendants

Your exact wishes concerning assets or money willed to vulnerable people that you wish to care for after your death must be exactly according to your wishes ensuring that these assets are used appropriately

Avoidance of liquidation of any family business(es) upon the death of an important member of the company

Offshore trusts provide the trustee with great flexibility, control and authority over their assets and provide absolute confidentiality, total privacy and protection from liability. Assets managed by offshore trusts are mainly free from tax applicable in a settlor’s home country or jurisdiction, protecting assets for heirs. An offshore trust is effectively a shield of protection to protect assets from scrutiny, tax and civil legislation and provide peace of mind for people looking to protect their assets and provide for their descendants into the future.