While some believe offshore trusts are only for the uber-rich movers and shakers in society, you don’t have to be a millionaire or billionaire to benefit from these asset-protection vehicles.
You can use an offshore trust to safeguard your hard-earned assets, however little or much, if you’re on the receiving end of litigation. So, it’s worth exploring how an offshore trust can help.
Keep reading to learn about five reasons you should consider setting up an offshore trust.
1. Safeguard Assets
One of the primary reasons to set up an offshore trust is to protect your assets. The last thing you want is to have someone pursue legal action to take your assets. When you set up an offshore trust with the help of a lawyer specializing in such asset security vehicles, you can place your assets beyond the reach of litigation-minded individuals.
Working with an experienced lawyer will ensure your offshore trust is set up legally in a favorable jurisdiction. There are many offshore destinations to choose from, but some are more advantageous to foreign investors than others. A lawyer will help you make an informed choice.
“The key benefit of an offshore trust is that it removes otherwise collectible assets outside the jurisdiction of U.S. courts and judges," says Gideon Alper, a lawyer at Alper Law in Florida.
People who seek safe places to protect their assets often want confidentiality. When you place your assets in an offshore trust that is governed by the laws of a jurisdiction with favorable trust laws, you’ll get a level of confidentiality you won’t get if you use a domestic trust. The deed of your offshore trust will be undisclosed to the public, keeping your personal matters private.
3. Tax Advantage
Yet another reason to set up an offshore trust is to take advantage of tax savings -- and, yes, you can do this legally without pulling a dishonest fast one on the tax man. Finding a suitable foreign destination to park your assets will lead to tax-free benefits. It’s worth discussing the matter with an experienced lawyer.
You’ve probably heard of people saving money offshore in less-than-legal ways. But a lawyer specializing in helping people set up offshore trusts can answer your questions and help you go about things in a way that won’t come back and bite you later.
4. Avoid Probate
Probate is the legal process of determining how a deceased person's assets are allocated. If you don't get your affairs in order, your assets must pass through the long and costly probate process before anything is distributed to the intended recipients.
Having a will in place when you die, your assets will be allocated according to your wishes. But if you die without a will in place, a judge will determine how to distribute your estate during probate.
An offshore trust in place means you can steer clear of probate. Offshore trusts are located outside the boundaries of your home country and are not included in probate.
5. Preserve Family Assets
Do you have assets you want to stay in the family? If so, setting up an offshore trust can be a godsend. No one wants to see assets they’ve worked hard for taken from them by people launching legal action. If you want to keep assets -- like a family home or cottage -- in the family, you can ensure your assets are secure and in your family’s control.
If you’ve ever wondered about the benefits of setting up an offshore trust, now you know. You don’t have to be filthy rich to benefit from this investment vehicle. Regardless of your income level or tax bracket, it can be a good idea. Speak to a lawyer experienced in helping people set up offshore trusts to determine if an offshore trust is a good option for you.
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