Should You Set Up An Asset Protection Trust?

Asset protection trust entities are designed to allow the creator of the trust to shield assets from possible threats in a civil law court. These threats can include unnecessary taxation, divorce settlements, or court awards for civil liabilities. Many trusts are designed so that wealth can pass from one generation to the next with as little being removed from the estate by inheritance taxes as possible. You can set up a trust of this type in an American state, or in an offshore jurisdiction. Whichever you choose, it will still need to be reported and disclosed to the Federal Government, as there are strict reporting requirements.

Using trusts to safeguard assets against the civil court system is something which the wealthy have been doing for years, but the practice is now becoming increasingly widespread. The development of the Internet and the ease of digital communication means that it is cheaper than ever before to set up a trust, especially one which is located overseas. There is no need to go offshore to secure a degree of protection, and the value of doing so is doubtful in any case.

The rigorous reporting requirements of the Federal Government effectively mean that there is no secrecy or privacy benefit to locating assets overseas, unless you are prepared to risk criminal charges and imprisonment by hiding that which needs to be reported. As the numbers of people seeking to use trusts to protect their money has increased, so has the amount of vigilance which the authorities have put in place. Although the act of moving assets overseas is by no means unlawful in itself, it is often seen as a reason for suspicion by the courts.

In the light of this, you may be wondering whether or not it is worth setting up a trust in the first place if you have substantial assets, the answer is almost certainly yes. The first consideration, though, is to avoid the twin dangers which lie in waiting for everyone seeking to protect their money. The first of these is government regulation, and the possibility of making a serious legal mistake without even realizing it. The second danger is the proliferation of dishonest promoters seeking to exploit gullible investors

These dangers can be avoided by being absolutely sure of what you want to achieve with your asset protection trust in the first place. You need to be realistic here, because there is no financial instrument which will give you complete immunity from all financial threat. A trust which is designed to shelter gifts to family members from tax, for example, can work well, but it is unlikely to protect your assets in the case of a divorce or other financial disaster. Planning is best done with the aid of a specialist lawyer, who can help you draw up the right asset protection trust.






 

Offshore Asset Protection News:

 

Helping Clients Protect What They Have - Accountingweb.com

Helping Clients Protect What They Have
Accountingweb.com
The goal of asset protection is to keep creditors and predators at bay and, for Keebler, many indicators of how to proceed come up through the tax and estate planning process. "For many physicians, architects, and lawyers who come to see us, .

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Preserving Your Assets While You're Alive - JD Supra (press release)

Preserving Your Assets While You're Alive
JD Supra (press release)
Preserving Your Assets While You're Alive By Matthew Crider, JD Family Protection Attorney If you're like most people, you're worried about keeping your money. The new mantra on Wall Street is that a EURśreturn of your money is the new return on your .

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Investments Drive Record Gold Demand in 2011 - Forbes

Forbes
Investments Drive Record Gold Demand in 2011
Forbes
EURśGermany and Switzerland were the main drivers of growth in the region as the eurozone remains in turmoil and the need for asset protection continues to be a priority,EURť WGC said. Central banks continued the trend established in 2010 of being net buyers .
Global gold demand surgesKhaleej Times
Global gold demand hits record high of $205.5 billion in 2011: WGCPlatts

all 283 news articles »
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PruLife Launches New Investment Product
MANILA, Philippines EUR” Aimed at providing more investment opportunities for Filipinos, British life insurer Pru Life UK has launched a product that will allow consumers to piggyback on offshore funds from Asian economies. Antonio G. De Rosas, Pru Life UK president and chief executive said the insurer has introduced the PruLink Asian Local Bond Fund, which is structured as a feeder fund that ...


Asset Protection - The Wrong Way - JD Supra (press release)

Asset Protection - The Wrong Way
JD Supra (press release)
In a case of "you have got to be kidding me" a Florida man adopts his girlfriend (in her mid-40's) as part of an "oh no - I should have done this sooner" dubious asset protection plan. Steven A. Loeb, Esq. points out that there is a right way and a .

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Protecting assets from lawsuits - Monterey County Herald

Protecting assets from lawsuits
Monterey County Herald
Trusts can be used to protect assets, but certain steps need to be taken and timing is imperative. Asset protection planning must be done before you are involved in an activity that you know EUR” or should know EUR” may result in a lawsuit.

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