Way to Safeguard Offshore Asset Protection Trusts

An asset protection trust is a contractual arrangement whereby a person holds property as a nominal owner for one or more beneficiaries. An offshore trust is simply a trust that is located at an offshore location, usually a tax haven, or a stable jurisdiction. An offshore trust is recognized in common law jurisdictions and offers the opportunity to safeguard the beneficiary’s assets in a safe environment. The best thing about offshore trusts is that the individuals have total control over their assets as they can be appointed Managers who have direct control of the assets. The trust is overseen by a trust protector or trustee who is a foreign national and takes care of all operational work related to asset allocation and investments.

There are various ways to ensure that the offshore asset protection trusts are kept safe and secure and provide a source of income to the owners. The most important factor is to select a professional trust protector. The person must know how to take care of the client’s money. The assets must be invested properly, and all records must be maintained in full. The US Government requires that details of all income and expenses are maintained properly and reported. A reliable trustee would be able to take care of the client’s money and also provide all necessary records to ensure the beneficiary does not face any legal problem in the US.

In addition, the client should be aware of all details related to the trust. They must keep a tab on where the funds are flowing to and what the expenses are. A professional trust protector will ensure the client has direct control of the offshore trust to the extent possible. However, in the event of legal compulsions, the trustee should remove the client from the position of Manager of the trust. Since courts have no jurisdiction on foreign soil and the client is not the Manager any more, any fraudulent order demanding the seizure of assets is not applicable tothe trustee who is a foreign national. The assets will remain safe until the order can be rescinded through legal means.