When you are running a business, and you have potential creditors that might attach your assets, you have the option of transferring the assets to an LLC or a trust that is located offshore.
Typically, a person that sues you in New York has a high chance of getting awarded a certain amount of money, and they will force you to turn over the assets to them to get their money back.
However, when you go for offshore protection, the assets aren’t located in the country, and they are now a different entity – which means they aren’t in your name at all. No creditor will want to come after assets that aren’t directly linked to you.
Additionally, the courts in the US don’t have a jurisdiction in another country, which means the judgment that they pass will not affect the assets.
However, you need to work with an asset protection lawyer to set up the plan in the offshore location. Let us look at the steps.
Analyze Your Assets
You don’t have to put all assets in the trust – just a few. So, categorize your assets into two – those that have potential legal liability and those that don’t have liability. Those that are unlikely to be attached by a creditor are safe. Those that have the potential to be attached need to get secured in a trust.
The next thing is for you to understand the value of your assets. This is because offshore asset protection doesn’t come cheap. You will end up paying a substantial amount to manage the assets in the offshore account.
While you analyze the assets, it is a good idea to identify the potential creditors. List all of them and the amount you owe them to know your position.
Enjoy Special Provisions
The countries that offer offshore trusts rely on the business that comes from international customers to come up with special provisions for you as an investor.
These provisions include increased privacy, lower taxes, as well as specialized services that you cannot get with domestic trusts.
One of the pillars of an offshore asset protection program is the safety of assets. The countries have put in place measures to make sure your assets are well protected all the time. Even if the judge in New York issues a monetary judgment against you, the assets are safe due to the powerful asset protection program that these laws offer.
Even when given the ability to repossess your assets, the country won’t allow it to happen, unless in extraordinary circumstances.
Additionally, the foreign trustee isn’t subject to New York court rulings, so they aren’t required to release your assets to the creditor.
Are you looking for recommendations on how to start your offshore asset protection plan? Ask your New York asset protection lawyer for direction.
The trust comes with a way to control your financial accounts remotely. You can move money out or add money to it as you wish.
When an issue arises, and you need to be protected, the service provider designates a licensed, bonded trustee to step in and offer the much-needed legal wall between your assets and the creditors.
The trustee follows your recommendations to make sure you are shielded from any legal attack. The trustee doesn’t work for you all the time. Instead, he steps in only when something comes up.
Protect Your Assets Better
The asset protection attorneys at Trust and Estates have all the experience and tools to help you create a solid offshore plan to protect the assets that you love so much. We use various strategies to protect your assets, and give you advice when you are stuck. Call us today to discuss the options that you have.
Choose a Protection Strategy
Setting Up an Offshore Account
One of the protection strategies you can use is to set up an offshore account. Many people don’t know where to start, which is vital that you work with an asset protection lawyer to recommend a few service providers that you can use.
Many times, you have to come up with a private offshore company to use for setting up the company. The bank accounts have the same features as local accounts; you, therefore, need to have a minimum deposit. This varies from one bank to another.
Create an Offshore LLC
To make the strategy work out for you, come up with an LLC. Because you own it, you have total control over the assets but not in your names. This makes it tough for your creditors in New York to find them.
Opt for a Trust
When you decide to use an offshore trust, you must transfer all the titles to the trust. You are now the “settlor”, while the person that you choose to manage the trust on your behalf is called the “trustee”.
The good thing is that you can set up a trust where you are the settlor, trustee and the beneficiary all in one.
To make the trust more viable, add a transfer clause. This clause dictates to the trustee the country where you want the trust to move to in a certain situation. For instance, if someone manages to lodge a petition in one country, then the trustee can move the trust to another country of your choice.
This way, the transfer clause makes it hard for a creditor to get to the assets, since by the time the creditor makes a move; the trust has been moved to another country.
Work with Professionals
Work with a New York asset protection lawyer that understands all there is about offshore protection. The lawyer also connects you to his legal counterpart in the country where you want the trust to be located.
The lawyer helps you create a trust fast enough so that it doesn’t seem as if you are doing so to avoid paying debts. The lawyer should understand the Fraudulent Transfer Act as well as be able to create different offshore asset protection strategies.
If you have a person close to you that is using one of the strategies, you can ask them for guidance.
You have the option to choose between different countries when it comes to the destination of your assets. Each location has different laws to follow. Talk to your asset protection lawyer for a better comparison.
Protect Your Assets in an Offshore Location
When you have assets that you wish to protect, an offshore asset protection strategy can be of great help. Call us today to start working on the idea with a qualified asset protection attorney.