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

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

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

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

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