How To Open An Offshore Trust & Other Asset Protection Questions Answered

Frequently Asked Questions About Offshore Trusts and Asset Protection

Are offshore trusts legal?

Absolutely.  Generally speaking, trusts are some of the oldest legal tools in existence.  They have been around for centuries, and courts have repeatedly upheld them as a legal method for protecting wealth and assets and, eventually, passing wealth and assets on to family members.  There is literally no difference in the legality between offshore trusts and domestic trusts.

Are offshore trusts an appropriate form of asset protection for business owners and high income earners

Yes, for sure.  business owners and high income earners are prime targets for frivolous lawsuits.  Offshore trusts can provide bulletproof asset protection for business owners and high income earners.

What should I know about how to open an offshore trust

What you need to know is that an offshore trust, by itself, is not enough to allow you to keep control of your assets while taking advantage of ironclad asset protection laws and strategies.  The most effective form of asset protection planning makes use of limited liability companies and family limited partnerships in conjunction with offshore, asset protection trusts.  If you really want to know how to open an offshore trust, call Lodmell & Lodmell today and we will walk you through the process.

Does a living trust protect assets from lawsuits the same way than an offshore trust protects them?

Absolutely not.  It’s a very common question and a widely held misconception that living trusts protect assets from lawsuits.  In reality, however, all trusts are not created equally.  The reason is that different kinds of trusts are created for different reasons.  Some trusts are created to reduce estate taxes (e.g. traditional domestic trusts), others are created to hinder creditors (e.g. offshore trusts), and others are intended just to keep estates out of probate court.  Living trusts are intended solely to keep estate assets out of the judicial system.  They allow for a distribution of assets without the expense and hassle of involving a probate court, but they do not offer any asset protection features or any measure of lawsuit protection

If you have other questions about asset protection, offshore trusts, or protection from lawsuits, please take the time to conduct an exhaustive search of our website, and don’t hesitate to call Lodmell & Lodmell with your questions about asset protection planning.  We are here to serve you, answer your questions, and help you devise a strategy that will meet your needs and protect your assets from lawsuits.