The United States is a wonderful country where both the opportunity and the possibility of creating wealth still exists. Sad to say, however, that there are a few downsides.

First and foremost is the fact that the U.S. is now the most litigious countries in the world. Today you can be sued for about anything, from having your coffee brewed too hot to making an off-hand remark at the office. Offenses such as these can quickly find you at the mercy of a court’s decision, and the same court can separate your from your money just as quickly.

The second is the Internal Revenue Service. Unless you plan early, and plan well, upon your death, the large inheritance that you left to your heirs can easily be taxed away, thereby leaving a much smaller amount than you had planned.

Thankfully, there is a little known, but easy to arrange financial instrument which can help protect you and your finances in these situations known as a “trust”.

How an Offshore Trust works:

A trust is basically a legally binding agreement between two parties, known as the grantor and the trustee. The grantor “grants” control over specified assets and property to the trustee, who is then held responsible for them. The beneficiaries are listed in the trust, and they will “benefit” from the assets that are being entrusted. Quite often this is in the form of receiving the assets upon the grantor’s death, or by receiving the profits generated by the assets listed.

The key point is that this agreement helps by legally splitting the grantor from these assets. By moving the trust offshore, there is a further added layer of protection. With your property entrusted in such a manner, it thereby becomes difficult for a court, a tax collector, or an ex-spouse to connect you to the assets that have been entrusted and take them away from you.

How to establish the trust:

Establishing a trust is a surprisingly simple and simple process. Once the location of the trust, the property to be protected, the reason for the trust (i.e. tax reduction, protection against lawsuits), and the beneficiaries have been decided upon, a proper trust can be drafted in very short order.

There are a number of reputable firms that can arrange this quickly and easily. With many countries to choose from, and laws making some of the jurisdictions better suited for certain purposes than others, you can easily find the perfect location for your needs by consulting with them.

In summary, because of its ease in arranging and flexibility in use, as well as the privacy and asset protection it provides, you would do well to make the offshore trust one of the weapons in your financial planning and wealth protection arsenal.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.