Offshore Trusts are one of the most effective tools for shielding your wealth from lawsuits. This blog post presents answers to some of the most frequently asked questions about Offshore Trusts and how they compare to other types of Asset Protection Trusts.
1. What is an Offshore Trust?
An Offshore Trust is a Trust formed under the laws of another country.
2. Why Create an Offshore Trust?
The primary reason to create an Offshore Trust is to allow you to control and enjoy your property without the fear that you could lose your property due to a lawsuit.
3. What is a Domestic Trust?
A Domestic Trust is a Trust formed under the laws of the United States.
4. When Should I Use a Domestic Trust and When Should I Use an Offshore Trust?
Domestic Trusts are best for making present day gifts, avoiding probate, and for reducing gift and estate taxes. However, Domestic only Trusts should never be used for asset protection. Offshore Trusts, or other Trusts that can be moved offshore, are the best option for protection from lawsuits.
5. What Are the Downsides of Creating an Offshore Trust?
The primary downside of using an Offshore Trust it that you must hire a foreign trustee to manage or help manage the Trust. Additionally, there are requirements for reporting to the IRS anytime property is moved out of the United States.
6. What is The Bridge Trust™ ?
At Mile High Estate Planning, we use The Bridge Trust™ which allows our clients to manage their own Trusts while still receiving the protection of an Offshore Trust. The Bridge Trust™ combines the simplicity of a Domestic Trust with the protection of an Offshore Trust. The Bridge Trust™ allows you to serve as the Trustee (or manager) of your Trust when a lawsuit is not being threatened. Then when you are threatened by a lawsuit, the offshore provisions are triggered, and the plaintiff will have to sue in a foreign jurisdiction where it is extremely unlikely that they will prevail.To learn more about protecting yourself from lawsuits, give us a call today to schedule a time to speak with an Asset Protection Attorney. Call us at 720-924-6171.
S. Blake Harris is the Managing Attorney at Mile High Estate Planning where he assists clients with Wills and Trusts, Asset Protection, and Probate. Blake has extensive knowledge and experience helping families plan for and manage the transfer of their assets.
Blake has a degree in Finance from the University of Florida and a Juris Doctorate from the University of Florida College of Law, a top tier law school. While in law school, he worked in the investment banking industry in New York City.