ASSET PROTECTION TRUSTS:


Asset Protection Trusts, or APTs, are complex structures that can be custom made to fit the needs of a particular individual and his goals. They are often confused with Trust Companies but are very different. The history of wealthy families using trusts dates back to Roman times when trusts were used as an instrument for holding property. More recently, trusts were common in England as early as the 11th century. It is generally accepted that the modern trust, used for asset protection and estate planning, has a history extending some four hundred years.

In the United States, it was possible to obtain substantial tax benefits prior to the Tax Reform Act of 1976. “Under the prior law, a United States citizen could create an irrevocable accumulation trust that would be taxed in basically the same manner as a nonresident alien individual. Thus, it was possible to defer United States taxes indefinitely or until distributions were actually made to its US beneficiaries.”[1] While tax law reform has eroded much of the tax-planning power of the trust in United States, it remains a powerful tax planning weapon elsewhere. For citizens of the United States, the Offshore Asset Protection Trust is a formidable tool for asset protection against creditors and litigators.

An APT with the objective of protecting assets should divest the settlor of just sufficient ownership of assets to deter potential future claims by creditors or litigators. For United States’ citizens, ownership of a foreign trust will frustrate the efforts of creditors as assets are the property of a trust and not a named individual. Offshore courts are hesitant to set aside a transfer to a trust if it is properly established under their law. In addition, a judgment from a U.S. litigator is difficult to enforce offshore; most litigation stops at the border. If for any reason, the jurisdiction was approached and asked to disallow the trust, it can often be easily moved to another country before any such action would take effect.

Much like any offshore contemplation, anyone considering an offshore trust should seek the advice of a competent, professional advisor. There are several terms regarding trusts that your advisor will use frequently:

  • SETTLOR or GRANTOR: A person placing property into a trust.
  • TRUSTEE: Professional who manages trust named beneficiaries.
  • BENEFICIARY: Individual(s) named to benefit from the trust.

Finally, it is important to keep in mind that there are many types of trusts. One specific type of trust cannot be all things to all people. The best approach is to know your main objective, and then consult a professional.

[1] Marshall J. Langer, “Practical International Tax Planning” p.57


Posted in: Asset Protection, Miscellaneous, Uncategorized on March 21, 2014

Related Posts

Cross-Border Business Planning

Posted On November 20, 2016
U.S. Shelf Corporations for Privacy Benefits of a Pre-Established Corporation: For Non-U.S. citizens, owning a shelf corporation in the United States may enhance privacy and open new markets.  It should also be noted, however, that to open a bank account they will likely need to travel to the United States and meet with potential banks. Instant availability […]... Read more

Cross-Border Business Planning

Posted On June 12, 2016
The United States is the Largest “Tax Haven” In the World! The United States as a Haven for Privacy: Since 2014, 97 jurisdictions have agreed to impose new disclosure requirements for bank accounts, trusts, and other investments held by international investors. Of the nations the OECD asked to sign on, only a few have declined. […]... Read more

1975 Swiss Trust Company for Sale!

Posted On June 5, 2016
New Offering, Lowest Price, Great Deal! Manage money and gain asset protection without the need to relocate: An unparalleled opportunity and the fastest & least expensive avenue available to business owners. 1975 Swiss Trust Company for Sale! (Turnkey, Admin Included, No Hidden Fees) 1975 Swiss Trust Company: * Swiss Trust Company (41 Years Old) * […]... Read more

 
 
Corb7 International
468 North Camden Drive, Suite 200 Beverly Hills. Ca. 90210 – USA Phone: +1-310-601-3115
© 2017 Corb7 International, Inc. Site By: Ex-Dimension, Inc | Sitemap

Corb7 International, Inc. is headquartered in Beverly Hills, California. Corb7 International, Inc. is a highly specialized firm that structures private international banks and insurance organizations, in order to diversify their clients' business interests and offer innovative solutions. The advice of this and all our publications has been developed from sources believed to be reliable but it cannot be guaranteed. Such information and advice is always subject to new interpretation, court decisions and legislation. Corb7 International, Inc. does not give legal or tax advice. Any loss, risk or liability taken by an individual who acts on information in this and all our publications is disclaimed by Corb7 International, Inc. DISCLOSURE: We are grateful to be of service and bring you content free of charge. In order to do this, please note, we may be an affiliate for products which our firm recommends. If you purchase those items through our links we will earn a commission. You will not pay more when buying a product through our link. In fact, oftentimes we are able to negotiate a lower rate (or bonuses) not elsewhere available. Plus, when you order through our links, it helps us to continue to offer you ideas free of charge. Thank you, in advance for your support.

Inquire Now

Click To Contact