The Titanium Trust
The Titanium Trust is Mile High Estate Planning’s proprietary Asset Protection Trust that takes a traditional domestic asset protection trust and offshore trust one step further. Like titanium metal—strong and lightweight—the Titanium Trust has bulletproof strength in that it protects your assets in the United States but with the added advantage of agility to move your assets through a network of International Trust Companies, Protectors, and Bankers who work together to safeguard your assets.
At Mile High Estate Planning we are proud of being able to provide or clients with different asset protection solutions to fit their individual needs. For years we have offered offshore trust solutions that provide the highest levels of legal protection. Our team of attorneys at Mile High Estate Planning have created an asset protection trust that provides the strongest level of legal protection while avoiding the ongoing costs and compliance requirements of an offshore asset protection trust. The Titanium Trust uses a combination of domestic and international elements to provide exceptional flexibility and protection.
Why Set Up a Titanium Trust?
With the Titanium Trust, the trust assets can remain in the United States and the trustmaker can remain in full control of his or her assets unless and until a legal threat arises. If there is ever a risk of lawsuit, the trust assets can be moved offshore and a licensed, professional offshore trustee can take over the management of the trust. This arrangement ensures that once the trust is moved offshore, the assets cannot be reached by U.S. creditors, even if they ultimately succeed in their lawsuit.
There are only a handful of jurisdictions around the world with laws drafted to support the highest levels of protection The Titanium Trust can rely on the best of these jurisdictions, the island nation of Saint Kitts and Nevis as well as The Cook Islands to serve as the offshore sites of administration for the trust assets. The Cook Islands is widely recognized by legal experts as the nation with the most favorable asset protection laws and the most tested case law history. That being said, assets do not need to be deposited in these same countries, they can just as easily be placed in internationally recognized banking centers such as Zurich, Switzerland or Luxembourg.
This diversity of jurisdictions means breaking into the trust to collect its assets will be an extremely difficult task even for a highly motivated plaintiff or creditor. Offshore jurisdictions such as the Cook Islands do not recognize or give effect to certain judgments of foreign courts. This means, anyone attempting to attack the trust structure would need to travel around the world to take their legal battle offshore to an unfavorable and unfamiliar jurisdiction. Since these offshore jurisdictions are not under the jurisdiction of any U.S. courts, and do not allow for contingency based litigation, a plaintiff would need to spend considerable sums of money in attorney fees and court costs in order to continue their lawsuit abroad.
As a client of Mile High Estate Planning, our firm would guide you every step of the way to ensure you understand your options for nominating an offshore successor trustee, choosing an offshore trust protector, as well as international banking institutions. While the Titanium Trust is not for everyone, those with higher incomes or six figure saving accounts may want to consider how they could benefit from setting up a Titanium Trust.
What Can a Titanium Trust Protect?
A Titanium Trust can protect variety of different assets:
• Business Interests
• Intellectual Property
• Real Estate
The Titanium Trust℠ is designed to accomplish all of the following:
Bulletproof Asset Protection
We have established a network of International Trust Companies, Trust Protectors, and Bankers who work together to safeguard our clients’ assets. We combine the most powerful and time-tested tools for asset protection planning to shield our client's assets from lawsuits. The Titanium Trust℠ relies on the most favorable asset protection jurisdictions in the world to provide the highest level of legal protection available anywhere. A trust can safeguard assets such as cash, securities, and business interests.
The standard price for an offshore asset protection trust can range between $30,000 and $50,000 to set up plus annual fees which range from $5,000 to $10,000 per year. The Titanium Trust℠ offers the same high level of legal protection but at a much more competitive price than traditional offshore trusts. Additionally, as long as the Titanium Trust℠ is domiciled in the United States and managed by you, much lower yearly fees need to be paid to maintain the trust in effect. Dollar for dollar, the Titanium Trust℠ represents one of the most valuable alternatives for asset protection.
Assets held inside of the Titanium Trust℠ will not only receive protection from lawsuits they will also avoid the time and costs associated with probating an estate in the event of your incapacity or death. Your Titanium Trust℠ can work in place of your Revocable Living Trust or it can work in conjunction with your Revocable Living Trust to avoid probate and ensure your assets are safeguarded for the next generation.
The Titanium Trust℠ has the flexibility to act as a gifting vehicle to your beneficiaries so as you get older, you can apply for government benefits and avoid the state from seizing your assets to pay for your long-term care. As an irrevocable trust, the Titanium Trust℠ can be setup so that any assets placed in trust are considered a completed gift to the beneficiaries and no longer part your net worth for medicaid purposes
The Titanium Trust℠ also works as a succession planning vehicle as allowances can be made for beneficiaries after your life. The Titanium Trust℠ can continue to offer the same level of legal protection to your beneficiaries during their lifetimes if they so desire. That way, any inheritance received through a Titanium Trust℠ can remain protected from creditors, lawsuits, divorces, and other legal threat for generations.
The Titanium Trust℠ can also be used as a holding vehicle for various cryptocurrencies, tokens, and coins. Cryptocurrencies held in trust receive the same level of legal protection as any other assets, and can be stored with onshore or offshore platforms, exchanges, or in offline cold storage. Just as with other liquid assets, your cryptocurrencies can be held in the U.S. and only moved offshore if a legal threat arises.
Structure of the Titanium Trust
The structure of a Titanium Trust consists of the following parties:
Settlor: He/she is the one who creates a trust and places assets under it—that’s you.
Trustees: There can be more than one trustee. The trustee(s) is the one who holds the assets’ legal title and administers the trust. Also, all trustees are legally bound to protect a settlor’s assets on behalf of the trust’s beneficiaries.
Trust Protector: He/she is responsible for appointing trustees and overseeing their activities. The settlor appoints the protector to supervise the trust and to ensure that the trustee is acting in the settlor’s best interest. The protector may be an attorney, family member, or some other trustworthy person.
Beneficiary: He/she is the one who benefits from the trust. For most Titanium Trusts, the beneficiary and the settlor are the same person. But the settlor may add other persons (such as family members or other loved ones) to the trust.
How Much Does It Cost?
For a standard offshore asset protection trust you will pay $30,000 to $50,000 to set up the trust plus annual fees, which range from $5,000 to $10,000 per year. The Titanium Trust is priced much more competitively than traditional offshore trusts and has low annual fees. Contact Mile High Estate Planning for a consultation and pricing to protect your assets.
How Do I Get Started?
An asset protection attorney who specializes in creating a Titanium Trust can work with you and advise on what best fits your goals, needs, and level of risk. By contacting Mile High Estate Planning, you can learn more about the Titanium Trust, other asset protections tools, and whether these are right for your situation.
Additional Information On The Titanium Trust
A major problem that people face is how to protect their assets from creditors who may seek to seize them. While an obvious answer would be to transfer assets, this can be defeated if the transfer is fraudulent in any way. In addition, this would mean that one will lose the ability to make decisions about their assets. One way to protect assets from creditors is to establish a Titanium Trust℠. This allows someone to keep control of their assets for as long as possible and only move them out of their control when it becomes absolutely necessary.
Of course, one could create an irrevocable trust, naming children or a spouse as the beneficiary. However, this would also mean that some degree of control over the assets is surrendered. In addition, the grantor cannot be the beneficiary of an irrevocable trust. A Titanium Trust℠ is designed to prolong the period where the grantor can keep their assets. The grantor will only surrender control of these assets under certain circumstances. So long as the grantor remains the trustee, they have the ability to pass the assets along to someone else, including their children.
To understand how this type of trust works, it is essential to know the various characteristics of The Titanium Trust℠. The Titanium Trust℠ is established and will operate as a domestic trust. In order to be a domestic trust, the trust must be owned by a U.S. citizen and subject to the jurisdiction of a U.S. court. Domestic trusts have advantages when it comes to tax treatment of the trust.
The document establishing the trust will lay out certain conditions that will constitute a crisis. This could include any number of things, including a lawsuit or some sort of liability that could threaten the trust's assets. When that crisis occurs, the trust automatically ceases to be a domestic trust and is transferred to a trustee in the Cook Islands. In that event, the trust automatically converts to becoming a foreign trust. While some favorable tax benefits for domestic trusts are lost, the assets of the trust will become protected from whatever crisis threatens it. The protection comes from the fact that the assets are moved to a country that is not subject to the jurisdiction of U.S. courts. In other words, if the grantor loses a lawsuit, the assets cannot be touched by whoever is attempting to enforce the judgment. In this way, the assets become judgement-proof.
Even when the assets are held in the offshore trust, the grantor still remains the beneficial owner for the life of the trust. Not only does the grantor remain the beneficial owner, but they can also request that the foreign successor trustee make distributions from trust assets by expressing their wishes. In other words, just because the funds are in the Cook Islands does not mean that they are completely off-limits to all beneficiaries.
The Cook Islands is known as one of the most favorable asset protection jurisdictions in the world. Once the country assumes jurisdiction over the trust, it becomes very difficult for anyone to touch the assets. The country has a reputation for ignoring U.S. court orders. The Cook Islands has many qualified trustees since it is often the site of trusts. While the U.S. has paid greater attention to foreign trusts, it has largely left the Cook Islands alone. By 2013, there were over 2,500 foreign trusts in the country. Many other foreign countries are following the example of the Cook Islands in order to get their piece of this lucrative business.
Over the years, there have been several attempts by U.S. courts or government agencies to reach funds held in trust in the Cook Islands. None of these attempts have been successful. For example, the Federal Trade Commission failed to enforce a $37.5 million judgment against a U.S. citizen when the assets were held in the Pacific country.
It is important to note that even after the trust is transferred offshore, the grantor does not lose access to these assets. The new trustee can still administer the trust for the benefit of the original trustee. For example, while they cannot use the money to buy property for the original trustee, they can use the funds to rent property on their behalf.
One of the advantageous features of a Titanium Trust℠ is that they can be temporary in nature. Assuming that the threat that has triggered the transfer of the funds in a lawsuit, once the lawsuit is over, the trust assets can be moved from the Cook Islands back onshore. This means that, depending on the threat to the assets, the location of the trust can change back and forth.
The concept of a Titanium Trust℠ is tailored to individuals who may face some sort of lawsuit. For example, a physician would have assets that could be threatened by a possible malpractice suit. If the physician establishes a Titanium Trust℠, they can maintain control over their assets until they are threatened in a lawsuit.
An estate planning attorney can answer any questions about The Titanium Trust℠ and will let you know whether establishing one is legal in your state. They can also tell you some more of the pros and cons of establishing this trust and what you would need to do to proceed.
Contact a Titanium Trust Attorney
If you are an individual looking to protect your assets from lawsuits, probate, and long-term care costs, please contact Mile High Estate Planning today to learn more about creating a Titanium Trust.
If you are an attorney and would like to provide your clients with the Titanium Trust, please contact Mile High Estate Planning today to learn more about co-counseling with our firm.