International Asset Protection Trusts are very effective vehicles to address both (1) any desired estate planning goals and (2) added protection of assets from the numerous possible financial risks that could otherwise deplete a person’s financial resources. Trusts of this nature can be created through the application on one of the sixteen states in the U.S. that have passed statutory law that provide protection of the assets placed into these trusts. Alternatively, or even in combination with U.S. laws, such trusts can import offshore laws that provide even further enhanced protection for trust assets.
The trusts can be crafted so that the person setting up the trust (the “settlor”) can retain financial benefits from the assets transferred into the trust. For example, the trust can be designed as a “self-settled” trust, which allows the settlor to also be able to receive funds or other assets from the trust (as a beneficiary).
These trusts’ overall structure can include underlying entities that further isolate liability and enhance the control that is retained by the settlor over the management of assets.
Another crucial component to the trust structure is the transfer of ownership of assets into the structure. This “funding” aspect is also handled by the asset protection team at Davis Schilken, PC.
The International Asset Protection Trust can use the more protective offshore laws, yet be designed to be a “domestic” trust for US income tax definitional purposes. This results in there being no need to file the more onerous reports that otherwise apply to foreign trusts. Also, the fees for such a trust are less due to the trust companies involved and the design of the trust.