Today, litigation risk is a fundamental problem for people who have accumulated assets. In this climate of multi-million dollar claims, insurance coverage may not be adequate and a lifetime’s work can be wiped out.
Creating an offshore trust may help you protect your assets. These trusts can be expensive to establish but not one has been forced to pay out money to a creditor.
As long as a trust has been created before any likely threats have emerged, it may prove to be a valuable bargaining tool in future disputes. It’s vital to remember that these trusts offer no income tax benefits and that you should be solvent–able to pay you bills–even after you move assets into a trust.
With these trusts, assets usually can continue to be held in the U.S. but some liquid assets probably should be held overseas. This will help you build up a relationship with an offshore manager. Such a relationship may be helpful some day, if circumstances indicate that you should take assets offshore.
