What is a Living Trust?

One of the most frequent questions answered by asset protection attorneys is: What is a living trust? This question is often followed by a more detailed inquiry involving matters related to privacy, effective strategies to handle taxation, dealing with overzealous creditors, and flexibility in terms of money management.

Trusts are a Useful Tool for Investors

An asset protection attorney can provide you with valuable information and guidance, especially if you’re an individual concerned about asset protection and might consider using a trust or international trust. Using a trust is one of the most effective asset protection strategies for preserving wealth. Trusts can be used as part of an investment strategy or an estate plan. Trusts can also help protect minors or special needs children after a parent or legal guardian passes on.

Why Some Foreign Jurisdictions Are More Popular for Foreign Trusts

No two jurisdictions are the same when it comes to creating foreign trusts. Different conditions in each jurisdiction can work for or against trust investors who want to expand their portfolios outside their home countries. The reasons for these variances are many, so there are not predefined rules for determining whether a jurisdiction will be favorable. Each jurisdiction must be examined individually. To learn more about the factors that matter to investors, continue reading to learn more about differences between potential investment locations.

Establishing Offshore Trusts to Protect Your Assets

Offshore trusts allow investors to place money outside their gross estate. This strategy may help their beneficiaries avoid having assets used to pay estate taxes if the amount of assets exceeds a certain value. Some investors are not comfortable with foreign investments, but they can take a number of steps to establish safeguards to protect their investments. One safeguard that they can create is retaining some control over the trust instrument by establishing provisions in the trust that allow this. They can also visit the site of the trust company and diversify their assets to protect their financial interests in the process.

How Trust Law Formed Common Law

Trust law began to form with the inclusion of crusaders. It is based off of the idea that individuals can put their assets in the safekeeping of another person. While the origins were based on knights who wanted to protect their assets when they went off to battle, credit also formed in this manner when knights were in other countries, and they had depository receipts that showed that they had their property being safely held for them in a different country. Foundations are a more recent form of trust, but they do have some differences.

Creating Tax Compliant Overseas Trusts and Corporations

Offshore trusts and corporations are popular means of asset protection. It's important, however, to maintain tax compliance by managing these structures appropriately. Even though they help lower tax obligations, they must be reported correctly, and some structures do a better job of protecting certain types of assets and dealing with specific situations.