Offshore Trust Formation and Its Benefits

One of the strongest vehicles for asset protection is the offshore trust. As long as offshore trust formation is done in an appropriate jurisdiction, you should be able to protect your assets by preventing them from being attached to local judgements and financial enemies from accessing them. Popular jurisdictions do not recognize any civil judgements from a foreign country. Hence, if your creditor tries to pursue your assets in an offshore trust, it will have to initiate an expensive litigation process in the jurisdiction where your trust is domiciled and many jurisdictions provide protection in that any purported creditor must prove that the settlor intentionally defrauded the creditor by transferring the assets to the trust. Most creditors will not waste time and money to do that.

Offshore trust formation can also be beneficial for succession and estate planning. Assets in your offshore trust are separate from your estate. Hence, the trust can protect your assets against unwanted heirs. Trust deeds ensure that you, the settlor, can provide your assets only to your assigned beneficiaries. Alternatively, you can arrange for the trust to be useful for your children’s education and welfare in case of your demise.

An offshore trust offers more flexibility and confidentiality, too. The trust deeds are confidential and will not be registered publicly. Using an offshore trust can relieve you of the title to your assets, too, in case you are unable to properly hold your property. This way, your appointed trustees can take care of them.

If you have no idea how to start forming an offshore trust, consider working with a reputable service provider that is licensed in the jurisdiction where you want to keep your assets. Some firms offering offshore trust formation services can provide trustee services, too. Just make sure that they are licensed International Trust Service Provider and that they are regulated by the country. In Seychelles, offshore trust formation providers must be licensed and regulated by the local Financial Services Authority. Likewise, they are members of STEP (Society of Trust and Estate Practitioners).