Devise your offshore asset protection strategy

by Carlo Scevola President The most effective way to protect your assets is by devising an offshore strategy involving an LLC and a trust. It benefits you by placing your assets portfolio outside your home country’s legal system. Under offshore strategy, you essentially put your assets into a legal system that provides the strongest asset protection laws.

This type of asset protection ensures you are in full control of your assets. In the instance of any legal distress, the legal structure of your plan comes as your savior. Your assets are managed by an offshore trustee who is overseen by a trust protector. A trust protector is a professional who supervises the asset management. However, the trust still expects advice from you.
 
With an offshore asset protection plan, you pose huge hurdles to your opponents to threaten your wealth. As your assets are located in a completely different jurisdiction, pursuing it means the onset of a legal battle in a different legal system. So, your legal enemy has to spend thousands of dollars to get their case reviewed by a committee to check if it can be heard in the court. The entire episode requires hiring local representatives and attorneys to file the lawsuit. Generally, this tedious process is enough to discourage any legal pursuit. However, even if it reaches the court, there can be a statute of limitations, legal hurdles, costs, and odds of winning.

Benefits of offshore asset planning:

 • It all starts by planning an offshore Limited Liability Company (LLC) that is fully owned by trust. You remain the manager of the offshore LLC and control day to day activities.

 • When the manager is subject to legal distress, the trustee suspends the manager from its duties for the period of legal duress and takes up the active management of the company. During the trustee’s management, independent legal advisers of the manger or the grantor of the trust can advise trustee.
 
 • Courts in the outside jurisdiction don’t have control over offshore trustee, therefore can’t enforce seizure of trust assets.

 • The strategy poses many legal hurdles that dispirit legal enemies.

Plan well on time:

Act well on time to provide asset protection before a claim arises. When you plan things out after a claim, then it might be undone by fraudulent transfer law. Well, the point at which a claim arises can be earlier than a layman could think. Therefore, the only way to avoid any tiff is to act on time. 

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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