There are major advantages of forming an asset protection trust. Forming such a trust will keep assets protected from creditors. How can one benefit you? Where can I form my asset protection trust? What are the advantages? These are all common questions. Offshorecorporation.com can help you form your asset protection strategy. For maximum legal security form your trust offshore.
Asset Protection Trust – What’s Important?
It is important to keep asset protection trust in a location out of reach of the US Courts. Offshore asset protection trust are better suited for overseas brokerage and overseas bank accounts. Offshore tax havens such as Switzerland have a more stable and stronger banking system than the US.
Courts in the US have jurisdiction over US real estate. US courts have the ability to demand seizure of assets such as real estate. It is not advisable to have the offshore asset protection trust hold the title to domestic real state.
Offshore Trust Information
The statute of limitations for fraudulent transfers is one or two years after the underlying cause of action in the Cook Islands. When the lawsuit is finally completed in the US, the statute of limitations in the Cook Islands bars the suit. The Cook Islands is the most favorable location for your offshore trust formation.
A US court (or one in other location) has no jurisdiction over foreign controlled citizens. The judge cannot compel the foreign trustee to release funds to your judgment creditor. These islands that allow asset protection trust formation are extremely protective of trusts. The islands jurisdictions do not recognize judgments originating in a foreign country such as the US. Any litigation must be initiated on the islands jurisdiction to reach assets. In some of these foreign jurisdictions, numerous obstacles are placed for those attempting to bring litigation to an asset protection trust. In Nevis, a judgment creditor must put up a $25,000 deposit before a suit can be placed against your asset protection trust. The judgment creditor must then show beyond the shadow of a reasonable doubt that the assets were transferred into the trust in order to defraud the creditor.
Security
The settlor of the account is one who creates the trust. The trustee is the one who manages the trust. Beneficiaries are those who benefit from the trust. The settlor will convey the assets into the asset protection trust and designate the trustee and beneficiaries. An offshore account is established for the offshore trust so that two signatories are required: both the settlor and the trustee. If only the settlor had signatory rights, the judge in the settlor’s jurisdiction the settlor would be legally required to heed the command to return of the offshore funds. By requiring two signatures, the trustee cannot singly touch offshore trust funds without the written consent of the settlor.
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