Offshore Asset Protection Trusts
By utilizing an offshore trust you can place your assets outside of the reach of U.S. creditors. There are a number of countries that have very debtor friendly laws, including the Cook Islands, Nevis, Bahamas, Belize, Gibraltar and Mauritius to name a few. Generally, these jurisdictions do not honor judgments obtained in the United States and have a very short statute of limitations within which to attack the trust for fraudulent transfers, usually two years or less. Belize has essentially repealed the law of fraudulent transfers. U.S. persons establishing Belize trusts are protected under Belize law from the moment they are created. If an offshore asset protection trust is established in advance of creditor problems, you can still manage the assets in the United States under the umbrella of the trust utilizing a limited liability company owned by the trust.
Confidentiality or privacy (not secrecy), although desired, is not required for an offshore trust to succeed in preventing a creditor from reaching the assets owned by the trust. The offshore trust may provide confidentiality as to the existence of the trust, the provisions of the trust, the assets in the trust and their location and other matters. However, the offshore trust and its details will probably be discovered in the event of a lawsuit.
What is Asset Protection?
Limited Partnerships / Limited Liability Companies
Tax Consequences of Offshore Trust