You are looking for a secure way to protect the assets you have worked hard for over the years. Your goal is for your assets to bring returns for you during your lifetime, and for future generations.
Jargon and jurisdictions can be confusing. Nevis and Cook Islands are universally recognised by asset protection lawyers as the two best jurisdictions worldwide for totally secure and private trusts. But, do you need the platinum standard or will something simpler suffice? Are there any tax benefits to offshore trusts?
How about a Panama foundation or a Liechtenstein Anstalt (foundation equivalent)? For those living in common law jurisdictions a foundation may be a good alternative to a trust as they also provide strong asset protection. Panama’s foundation law is based on that of Liechtenstein.
The first consultation on setting up an offshore trust or foundation is FREE. Just fill in the form at the end of the page or contact us at: +372 5 489 53 37 , +372 5 495 26 39 , firstname.lastname@example.org.
Reasons to Set up an Offshore Trust or Foundation
Here are just a few of the reasons you should consider an offshore trust or foundation:
- You are concerned about being sued because you are in a high risk business or profession.
- Your family risks internal financial disputes – between your ex and current partners, financially irresponsible offspring, siblings fighting over assets etc
- You want to have control over how your assets are managed after your death (including the proceeds of life insurance policies)
- You would like to arrange your affairs in the most tax-efficient way before emigrating to another country.
- Your home country restricts your freedom to invest internationally.
- You live in a country with forced heirship laws
- You anticipate a “liquidity event” (sale of business, crypto etc) and would like to manage the new assets in a secure offshore structure like a foundation.
To choose the right Trust or Foundation for you, take advantage of a FREE NO-OBLIGATION professional consultation with a friendly offshore trust expert. To book an online one-on-one session, please submit the form below. You may also email, call, or WhatsApp us using the contact info at the top of the page!
Criteria for Choosing an Offshore Trust or Foundation
Where you set up your offshore trust or foundation will be influenced by many factors. These include:
- Citizenship and countries of residence – yourself and beneficiaries
- Analysis of potential threats – lawsuits, ex-spouses, political disputes, hostile third parties generally.
- How much control you will retain – for example more sophisticated structures might include a Private Trust Company to serve as trustee, but this comes with substantial extra costs and additional legal pitfalls you need to understand.
- Tax considerations – most offshore trusts are completely tax transparent, meaning they will not affect your tax position.
- Where and how you want your offshore trust to invest – do you need bank and brokerage accounts, crypto exchange accounts etc. Not all banks and brokerages are comfortable with all offshore trust jurisdictions.
- Stability of the jurisdiction and the history of its courts in protecting trust assets. In Nevis, for example, courts will not even look at a case until the person who is trying to sue you posts a $100,000 bond. This serves as a significant deterrent! Select a jurisdiction where the legal system is on your side from day one.
- The trustee. You need a professional you feel comfortable with.
- Personal preferences – it’s important to “feel comfortable” with a jurisdiction, so many people like to go with one they already know. But your ultimate decision needs to be based on hard facts. Consider also your overall offshore strategy including residence, offshore companies, citizenship, banking and more.
Because there are so many variables to consider, an offshore trust is not a DIY project. It is essential you take proper advice from a qualified professional. You might need both an offshore trust professional and one from your home jurisdiction, who will be able to work hand-in-glove on implementing your personal asset protection strategy.
Underlying LLC within an Offshore Foundation or Trust – An Extra Layer of Protection
When you set up an offshore trust it is best to be as discreet as possible. The fewer people who know about your offshore trust or Foundation, the better! Therefore many clients choose to have their trust own a tax-transparent LLC that serves as the “public” face of the trust or foundation for owning assets, real estate, bank accounts, etc.
Costs of Offshore Trusts and Foundations
What is the cost of setting up an Offshore Trust or Foundation? Does the cost justify the benefits? Of course, this depends a lot on the value of the assets you are trying to protect, and also the level of risk.
There can be huge benefits to going offshore, but be aware that setting up offshore cannot be compared cost-wise to a simple boilerplate trust or living will that your attorney or solicitor might set up at home.
For your offshore trust or foundation, you’ll need a trust lawyer to review the trust deed, a professional offshore trustee, there are government fees for registering the trust (franchise tax in case of a foundation in Panama), and ongoing annual expenses. The minimum cost for a simple offshore trust structure is around $5,000. To get a detailed estimate of the costs, arrange a no-obligation free consultation today!