Asset Protection Law Journal

Asset Protection Law Journal

Helping individuals and businesses take advantage of asset protection laws

Category Archives: Offshore Trusts

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Trust Protector Can Provide Added Flexibility For An Irrevocable Trust

Posted in Asset Protection Strategies/Alternatives, Irrevocable Life Insurance Trusts, Offshore Trusts, Ohio Legacy Trusts
A recent article in the New York Times by John F. Wasik provides an excellent discussion of trust protectors.  Many states now allow for trust protectors – – someone other than the trustee who essentially provides some checks and balances in a trust arrangement. A trust protector is a bit like a watchdog.  He or… Continue Reading

Considering an Offshore Trust? Then Consider the Cook Islands

Posted in Asset Protection Strategies/Alternatives, Offshore Trusts
Many foreign jurisdictions provide opportunities for offshore trusts.  But if you are seriously considering such a trust, the Cook Islands deserve your attention. Asset protection lawyers frequently debate the pros and cons, risks and possible rewards of offshore versus domestic asset protection trusts.  And there are lots of potential asset protection strategies that do not… Continue Reading

FBAR and FATCA Provide Separate Reporting Requirements for Offshore Accounts

Posted in Offshore Trusts, Swiss Bank Accounts
FBAR and FATCA (which require reports by U.S. persons of interests in foreign accounts) overlap to a large extent.  But they impose separate reporting requirements.  Failure to comply (especially with regard to FBAR) can have very severe consequences.  FBAR (a foreign bank account report) stems from a banking regulation under the Bank Secrecy Act.  It… Continue Reading

Trusts Require Flexibility

Posted in Asset Protection Strategies/Alternatives, Domestic Asset Protection Trusts, Irrevocable Life Insurance Trusts, Offshore Trusts, Ohio Legacy Trusts
Asset protection planning (and estate planning) frequently involves the use of one or more trusts. Possibilities include an offshore trust, Domestic Asset Protection Trust, irrevocable life insurance trust and various other kinds of trusts.  Most of these trusts are designed to last for many years. It is therefore important to give the trustee the flexibility to adjust… Continue Reading

What Are The Best Asset Protection Jurisdictions?

Posted in Asset Protection Strategies/Alternatives, Domestic Asset Protection Trusts, Offshore Trusts
There are many factors to consider in deciding whether a particular jurisdiction is or is not favorable from an asset protection standpoint.  Certain states and foreign countries are clearly better than others.  There is a constant tension between the legal rights of creditors and debtors; and each jurisdiction is to some extent more or less… Continue Reading

IRS Form 8938 — Another Reporting Requirement for Offshore Assets

Posted in Offshore Trusts, Swiss Bank Accounts
The IRS is continuing its efforts to identify sources of offshore taxable income of U.S. taxpayers.  This has lead to a new reporting requirement.  Many U.S. taxpayers with foreign assets must now file IRS Form 8938 – Statement of Specified Foreign Financial Assets.  This new requirement is applicable to the 2011 tax year, and must be… Continue Reading

Offshore Bank Accounts Are Still Advisable for Many Americans

Posted in Asset Protection Strategies/Alternatives, Offshore Trusts
Offshore bank accounts have been getting more and more scrutiny in recent years.  An article in last week’s Bloomberg News by David Voreacos outlines yet another U.S. investigation relating to foreign banks.  Eight offshore banks are now under a federal grand jury investigation — for facilitating tax evasion by U.S. citizens. But none of this means… Continue Reading

Reporting Rules for Offshore Trusts

Posted in Offshore Trusts
Offshore trusts have very stringent reporting requirements.  Some of the major filing requirements are the following: IRS Form 1040 NR — while a domestic trust files an IRS Form 1041, a foreign trust must file a Form 1040 NR. IRS Forms 3520 and 3520-A.  TD F 90-22.1 (FBAR) if their are foreign accounts.  This is required for any foreign… Continue Reading

Nevis Is A Good Choice For An Offshore LLC

Posted in Asset Protection Strategies/Alternatives, Limited Liability Company, Offshore Trusts
In the United States, forming an LLC in a particular state (such as Delaware) can provide significantly better asset protection advantages than forming that LLC in certain other states.  The same holds true for offshore LLCs.  Nevis is currently one of the best offshore jurisdictions for a limited liability company. Forming a limited liability company… Continue Reading

Domestic Asset Protection Trust Versus Offshore Asset Protection Trust

Posted in Domestic Asset Protection Trusts, Offshore Trusts
Alaska was the first state in the United States to pass a domestic asset protection trust statute.  Prior to 1997, this type of protection could only be obtained in offshore jurisdictions such as the Isle of Man.  A number of other states — including Delaware — have subsequently enacted similar statutes.  There is now an ongoing… Continue Reading

Surrendering Some Control of Your Assets Required for Asset Protection Trust

Posted in Domestic Asset Protection Trusts, Irrevocable Life Insurance Trusts, Offshore Trusts
Any trust that can help protect your assets from creditors requires that you surrender at least some control over those assets. This goes for an offshore trust; a so-called "domestic asset protection trust"; an irrevocable life insurance trust; and any other trust that gives you creditor protection. If you think about it, this is just common sense. If… Continue Reading

Best jurisdiction for an offshore trust?

Posted in Asset Protection Strategies/Alternatives, Offshore Trusts
More than 30 foreign jurisdictions now have asset protection trust statutes.  The Cook Islands was the first to adopt an International Trust Act for asset protection purposes in 1989, and many other jurisdictions have based their statutes in whole or in part on Cook Islands’ law.  A number of other jurisdictions have traditionally relied on… Continue Reading

IRS Recieved a Flood of Foreign Account Disclosures as Amnesty Deadline Approached

Posted in Offshore Trusts, Swiss Bank Accounts
I reported in a post earlier this month that as an IRS amnesty deadline approached, more than 7,500 U.S. taxpayers had voluntarily disclosed their secret offshore accounts.  Lynnley Browning reports in a November 18, 2009 New York Times article that the IRS received a flood of additional disclosures just before the deadline expired.  The final number of U.S. taxpayers… Continue Reading
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