As highlighted yesterday on the front pages of the Wall Street Journal, the New York Times and other newspapers across the country- – Credit Suisse has pled guilty to conspiracy to aid tax evasion (by helping U.S. citizens unlawfully evade taxes through Swiss bank accounts). The large bank agreed to pay about $2.6 billion in
Trust Protector Can Provide Added Flexibility For An Irrevocable Trust
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
Considering an Offshore Trust? Then Consider the Cook Islands
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
FBAR and FATCA Provide Separate Reporting Requirements for Offshore 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
Opening Offshore Accounts Has Become More Burdensome
The recent scandals involving tax evasion by some Americans (who had assets in secret Swiss bank accounts) are still playing out. The Swiss Cabinet recently announced a new program that would allow about a dozen Swiss banks to provide the United States Department of Justice with information on bank accounts held by Americans. The Justice
Further Erosion of Swiss Banking Secrecy
A front page article in today’s Wall Street Journal as well as an article by Lynnley Browning and Julia Werdigier in today’s New York Times report that Swiss officials have agreed to let banks release more information on the holdings of their American clients.
This most recent development is yet another step in a process
Trusts Require Flexibility
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
Tax Season Reminder: Reporting Requirements for Offshore Accounts
Offshore accounts – – whether in trusts, LLCs or just in your own name – – can have a variety of financial, business and asset protection advantages. But they will generally be subject to U.S. tax. And they have special reporting requirements. See for example my post from last year about IRS Form 8938.
Another Reminder That Asset Protection ≠ Hiding Your Assets
Avoiding U.S. taxes by hiding your assets is illegal. Last month, Switzerland’s oldest bank pled guilty to a criminal conspiracy charge for helping wealthy Americans avoid taxes by hiding their assets in secret accounts.
Wegelin & Co., founded in 1741, is the first Swiss bank to plead guilty to a criminal charge in the
What Are The Best Asset Protection Jurisdictions?
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