Have you considered the idea of an asset protection trust for you and your family?
The desire of a person to hide money and assets is not exclusively to shady dealings. Namely, some of the biggest companies in the world have offshore asset protection trust to hide and protect their money. In addition offshore trusts are 100% legal to use to protect your wealth.
Therefore, there is endless reasons to open an offshore trust. For example, offshore trust can protect you from lawsuits, taxes, and even divorce. When structured properly, an offshore trust provides maximum protection and planning opportunities. However when operated carelessly, an offshore trust is full of risks and problems.
“Brains are an asset, if you hide them.”― Mae West
Disclaimer: Vengerick Art is NOT a lawyer, and NOT offering any legal advice. This article is for entertainment purposes only. Consult with an expert lawyer before making any offshore trust decisions. Therefore we accept no responsibility for your actions.
What Is An Offshore Asset Protection Trust?
Before we can explore more details about the benefits of an offshore trust we must define what it is first. Investopedia defines an asset protection trust, a vehicle for holding an individual’s assets. Thus an offshore trust protects money, assets, from creditors and court orders.
All trusts have three main parties involved:
- The Trustor. The trustor is the creator of the trust and the original owner of the assets to be placed in the trust.
- The Trustee. The trustee is the individual that is in charge of managing the trust.
- The Beneficiary. The beneficiary is the individual that receives assets held by the trust.
Beyond the Reach of the Local Courts
Moreover, offshore trusts prevents a judge in your home country demanding that the trustee release funds or assets to a creditor. Again, foreign trustees are not subject to domestic courts.
If a creditor wants to pursue those assets. They would have to go through a lengthy and expensive legal battle in the offshore trust’s jurisdiction.
An offshore asset protection trust allows you to access the benefits of your money and assets. At the same time, the trust secures them for future generations of your family.
What Asset Protection Trust jurisdiction Is Best?
There are many locations, and choices for an offshore trust. They have a lot of things in common. Mainly all offshore trusts locations are zero tax zones. Once we establish this you have to find the best jurisdiction for your asset needs.
Presently best offshore trust jurisdictions are:
- Belize
- Cook Islands
- Nevis
- Luxembourg
- Jersey
- Cayman Islands
- British Virgin Islands
Which of these offshore trust jurisdictions is best for you? This will depend on your investment objectives, the size of your trust, and your level of risk of litigation. Also the banks you wish to open accounts at, and what assets you will place into the trust.
For example, If you will invest in hedge funds, Cayman Islands maybe the best choice. However if you will hold an EU business inside the trust, you might focus on Luxembourg and Jersey.
Most of Vengerick clients fall into the high risk of litigation category. Specifically they need a trust to protect against possible divorce and lawsuits. Thus. if you have a high risk of litigation, you might consider Belize or Cook Islands.
Most important offshore trusts are not a “one size fits all”. You must be clear with with your lawyer why you want an offshore trust.
Rules and Clauses
When you set up your trust you should consider several clause to offer you even more asset protection.
- Anti-duress clause. This clause is triggered if a creditor has made a claim or obtained a judgment against the trustor or beneficiary. Beyond the trust foreign jurisdiction.
- Protector clause. The trust protector clause names a protector for the trust that has the power to remove a trustee.
- Flight clause. The flight clause allows the trustee to move the trust to another jurisdiction.
- Choice of law clause. This clause explains that the trust is to be governed by the laws of the jurisdiction in which it is sited, not the jurisdiction of the trustor or beneficiary.
Given these points, you can add extra layers of protection to your money and assets.
Cook Islands Asset Protection Trust & Divorce
Given that 50% of marriages end up in divorce we believe everyone needs a Cook Island trust. With some of the oldest asset protection trust laws globally. Many experts believe Cook Island Trusts are the best asset protection from divorce.
For example, COOK ISLANDS INTERNATIONAL RELATIONSHIP PROPERTY TRUST ACT (2021), was passed specifically for trust holders facing a divorce. This new law helps divorcing spouses preserve the value of the offshore trust assets for the benefit of beneficiaries. Additionally this trust prevents property being divided by the matrimonial court of the home country.
Under the International Relationship Property Trust Act, a Cook Islands trust can offer the following advantages.
- Reduce litigation regarding assets during the divorce process.
- Restrict the ability of the matrimonial court to divide and distribute trust assets.
- Prevent the fire sale of assets by spouses who do not have financial expertise.
- Provide special protections for the assets of a family business.
Want to learn more ways a spouse can hide money before a divorce. Click here.
Secret Art How The Rich To Hide Money
Do the rich have a secret weapon to make their money even safer? Yes of course, and you can use the same tactics.
In fact art is the secrete weapon of the rich to hide and protect their money. For example you can use art as an extra layer of privacy for your trust. The buying and selling of art is very private. Thus transactions are not recorded with buyer and seller names.
Once you have bought a piece of art you can place it in your trust. This one extra easy step can make it almost impossible for anyone to locate your assets in your trust.
Surprisingly, for many of our clients. It is not necessary to buy a Rothko or Picasso to take advantage of this powerful secret the rich use. If you would like to learn how art can give you even more protection of your assets and money contact us.
Exclusive 125% buy back guarantee. For instance Vengerick offers special edition paintings with a buy back 125% guarantee. Thus helping new art investors take part and learn about the art world with very little to no risk.
Conclusion
The biggest and most powerful corporations in the world are using offshore trusts and offshore incorporation to protect their assets. These same legal vehicles can be used by individuals to effectively protect their most valuable assets from a scorned spouse in the event of divorce. When utilized correctly under the guidance of experts, trusts are the best means of protection available to those at risk of losing their hard-earned assets.