Offshore Asset Protection for Trusts - Why Do You Need It?

Posted by Sterlingoffshore on August 24th, 2016

Many experts agree that one of the strongest forms of asset protection available is the establishment of an offshore strategy that involves an and a Trust. This kind of setup can remove your asset portfolio (in its entirety, if you prefer) out of your home country’s legal system. This arrangement allows you to put your assets into another legal system with stronger asset protection laws than those in your own country. 

With a trust asset protection plan, you’re still 100% in control of all your assets because you become the Manager. If there is a legal threat against you, you can relinquish control of those assets to your offshore Trustee, who is duty bound to protect your trust assets and for the period of duress. Once the event of duress is over, this Trustee can reappoint you as the Manager. During the event of duress, the trust can accept advice from you as well via your independent legal advisers. 

Why should you go offshore? 

Your legal opponents will find it hard to threaten any wealth that is protected by your offshore asset protection plan. Going offshore means putting your assets in another jurisdiction—and if those assets are pursued, they have to be pursued in that foreign jurisdiction’s legal system. Your legal opponent will need to a fairly substantial sum of money to present and try a case in that jurisdiction. Your enemies will need to hire local representation as their lawyers cannot work in that foreign jurisdiction. All this complication is usually enough to prevent legal pursuits. And in the unlikely case that the case goes to court, a statute of limitations applies. The case has to be brought within a maximum of as little as 2 years from the date of transfer of assets in question to the trustee in some jurisdictions; otherwise, it is thrown out. It’s very rare (and virtually unheard of) for assets in an offshore trust to be seized.  

Outside courts don’t have jurisdiction over your offshore Trustee, and don’t have authority to enforce the seizure of your trust assets.  In case assets do get transferred after the onset of legal issues, the so-called fraudulent transfer has to be proven within the 2-year statute of limitations—and it must be proven beyond a reasonable doubt in the offshore jurisdiction’s courts. This legal hurdle is often too great for most legal opponents. 

About the Company:

Sterling is a leading licensed and regulated corporate, trust, foundation and investment fund services provider delivering specialised solutions for a global clientele of international corporations, institutional investors, high net worth individuals and families as well as their intermediaries. Whether an end user of our services or an intermediary, Sterling provides an efficient, personalized approach to ensure smooth, efficient delivery of services that meets the requirements of each client.