Asset Protection TrustsAsset Protection Trusts are an integral part of Asset Protection, Creditor Deterrence, and Estate Planning. These flexible legal structures are specifically designed to frustrate potential creditor attack. They are frequently used by individuals with substantial net worth who own closely held businesses, or professionals (doctors, lawyers, stockbrokers). Sometimes they are used in anticipation of a marriage or a change in marital status. They are also used in conjunction with other legal entities as a means to pass on a closely held or family business (to the next generation) while adding potentially fatal creditor barriers.
These trusts frequently take the form of a "Foreign Grantor Trust" for tax purposes, and are designed to be "tax neutral". (There are tax reporting requirements for these types of trusts) Their value is in the area of asset protection from creditor attack, not tax savings. They are custom designed plans intended to meet specific client requirements. These trusts are not "cookie cutter" efforts. The plans are complex and typically involve one or more business entities, frequently including both domestic and foreign components. These plans are not for everyone. Depending on your particular financial and economic situation, you may wish to adopt other estate planning strategies.
This article is designed to introduce you to the importance of asset planning and the need to protect your wealth. It is published as part of general information series for visitors to our web site. If you need to pursue an asset protection strategy, make sure you do it with the assistance of a professional.
There has been a lot of publicity about Offshore Corporations and Foreign Asset Protection Trusts. Here is some general information that may help you decide if "Offshore" may be advantageous for you.
Business Owners and Individuals consider offshore alternatives because.......