When the financial seas are calm and there is no danger of imminent creditor attack, a trustee in any jurisdiction which recognizes trusts will do just fine; although, normally, it is best to choose a trustee in a jurisdiction which has enacted specific asset protection legislation.
A properly drafted asset protection trust should always be structured so that the foreign trustee does not have any access to the protected assets. It is key that you never enter into any contract (and a trust agreement is just a contract) which forces you to trust anybody else (especially a foreign trust company) with your assets. In addition, if attack comes, the trust will likely be migrated to a different jurisdiction utilizing the Cuba Clause.
Since, with a properly structured asset protection trust, you are not in any way vulnerable to the foreign trustee, the primary consideration should be ease of communication and cost (unless there is a good reason to pay more, we believe the annual cost for an offshore trust company should normally be kept to less than $2,000). If creditor attack comes, then we believe that a private trust company should be formed to become the foreign trustee.
You should endeavor to choose a jurisdiction which is perceived as "clean." Some jurisdictions have gone overboard in promoting themselves as asset protection havens and are perceived as having many trusts settled with fraudulent conveyances. You don't want to be tainted if you are ever forced to defend your structure in a U.S. court.
Please feel free to contact us if you are in the process of choosing a foreign trustee. We have our favorites and are willing to make suggestions. Just remember one key, never ever put yourself in a position where you are forced to trust a foreign trust company with any of your assets. If you are asked to do this, you are getting bad advice.
