Asset protection is a method by which an individual or entity protects their assets through the use of multiple entities, trusts, insurance, and estate planning. A well structured asset protection plan can be complex and challenging and is most imperative that the form of asset protection is properly designed and implemented in a legal manner.

Likewise to a living trust is of small use if it is not funded, an asset protection plan looses its value unless it is funded and the documentation is correctly implemented. Whether it is a trust, foundation, corporation or any other asset protection vehicle, Emet Offshore Consultants can assist you in the provision of your plan and inter relating the various entities for maximum benefits.

Any form of asset protection trust regardless of onshore or offshore can be used to protect assets from personal or professional litigation.

Whether established in an offshore jurisdiction or not, most assets protected by the given trust for a U.S. citizen can remain in America. The assets usually remain under the indirect control of the Settlor (the person establishing the trust) as well. Such a trust will usually be irrevocable for a set term, and during that period the Settlor will not be a direct beneficiary of the trust.

Depending on circumstances and proper legal council, many U.S. asset protection specialists favour structuring offshore or foreign trusts in a way so that they are taxed as domestic grantor trusts.

If the trust is created properly, any creditor or anyone suing the Settlor will be unable to reach or claim the assets within the trust.

If the offshore asset protection trust has been structured as an irrevocable trust for a set term, at the end of the term provided there is no current or ongoing threat, the assets can be returned to the control and direct ‘ownership’ of the Settlor.

Please note the following:

U.S. citizens are taxed on their worldwide income. This includes income from interest, dividends and gains whether onshore or offshore.

The U.S. government allows money and assets to be moved offshore freely; however it requires full disclosure relating to the amount of money or assets moved and when they are moved.

The U.S. government has task forces committed to the prevention of money laundering and tax evasion.

The U.S. government makes it clear that US citizens must comply with all reporting and taxation demands.

However, the utilization of offshore trusts and bank accounts can be an excellent way for U.S. citizens to legally and securely protect their assets and themselves from litigation for example.

Offshore trusts offer an individual a fair degree of personal confidentiality, privacy and asset protection from claimants such as an ex-spouse or business client for example; and if properly structured, offshore bank accounts can offer degrees of financial protection from potential future claims.

At all times U.S. citizens must be aware that it is their legal duty to comply with American taxation and reporting requirements.

The purpose of effective offshore asset protection planning is the negation of any economic incentive to sue.

Please contact info@emetoffshore.com to learn more on offshore asset protection and its benefits.

An offshore foundation is a hybrid between a trust and a corporation. It serves as an advantageous vehicle for asset protection. Although the word foundation generally alludes to a charitable or non-profit making organization, only a small percentage of foundations are charitable. Most offshore foundations are structured to afford protection over the founders’ assets by legally owing them, which cannot be touched by creditors or frivolous lawsuits.

The offshore foundation is legally able to conduct daily business operations and can be structured that it owns corporations which are then able to execute business functions.

The specialty of an offshore foundation is that it has no actual owners but only a board of officers. This might appear as a minor juridical issue but actually it is of utmost importance. Once assets have been placed into the offshore foundation, the founder does not legally own them or have a requirement to declare them. Neither does he/she own the offshore foundation. This is of particular interest in lieu of bankruptcy, divorce or third party claims. An offshore foundation can maintain ownership over all types of assets such as bonds, stocks, real estate and patents or rights.

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Advantages of an Offshore Foundation:

• The Founder can transfer assets into the offshore foundation and legally declare he does not own them.
• No assets that belong to the offshore foundation can be seized.
• Potential inheritors can not make claims against the offshore foundation.
• Offshore foundations are free from taxation.
• Offshore foundations are not required to be charitable or non-profit making organizations.

Structure of an Offshore Foundation

An offshore foundation is established through the founder funding the entity with assets, which are also known as the patrimony. Assets can be a range from real estate, shares to monetary earnings and can include present or future assets. Upon the funding, the Foundation becomes irrevocable until the Founder dies or has otherwise stated. This is a major reason why many offshore investors utilize the Foundation as a "will". In structuring a Foundation, they are assured of their bequests and prevent their assets from going into probate.

The Founder or appointed third person can make transfers of assets to the offshore Foundation, unless the Founder has stated otherwise. The offshore Foundation is able to hold any type of assets and can accumulate income from any form of legal business. These assets will be held as a separate estate from those of the Founder and any beneficiaries that the Founder may have included. They are held separately for the purpose of not being able to be seized or levied upon by personal creditors.

Generally, the Founder retains control of the offshore Foundation through the Power of Appointment from the Foundation Council. The Founder can be a natural or legal person. The Founder can serve as a member of the Foundation Council, as a Beneficiary or as a Protector.

A Founder has the power to remove all the above or to assign these powers to someone else appointed in the offshore Foundation. Emet Offshore Consultants can also provide a nominee that can be appointed as the Founder, so that an individual’s name need not even appear in the entities' Memorandum of Constitution.

Please contact info@emetoffshore.com and we will send you a list of further advantages and legal protection that an offshore foundation can provide. We can also share with you the most reputable domiciles to structure your offshore foundation in accordance with your specific needs at the most competitive rates.

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An offshore trust serves as one of the most lucrative vehicles for asset protection when established in the proper offshore jurisdiction. A trust is a contract or agreement that is structured between three parties, the Settlor, Trustee and Beneficiary. Emet Offshore Consultants will only form trusts for its clients in offshore jurisdictions that are politically stable and that provide very strong asset protection. Emet Offshore Consultants favour locations such as Cook Islands, the Isle of Man, and the Island of Nevis.

Advantages of an Offshore Trust:

• The Settlor can transfer any assets he/she own and declare that he/she does not legally own them.
• Assets that belong to a trust are legally protected and can not be seized.
• Potential inheritors can not make claims against the trust.
• Offshore trusts are not subject to taxation.
• Assets are kept out of the reach of creditors.
• U.S. judges and those in other locations do not have jurisdiction over foreign citizens.
• Local judges cannot legally compel the foreign trustee to release funds to your judgment creditor

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Structure of an Offshore Trust

Settlor
The Settlor is the transferor of the assets into the offshore trust. Any kind of asset can be transferred: funds, shares, physical properties, real estate and non entities such as patents or rights. Once the assets are transferred, the trust can not be revoked. The Settlor is then able to declare that he/she has no legal ownership on the transferred assets.

The formation of an offshore trust is to extend protection in cases of divorce, bankruptcy, inheritance or legal claims. Offshore trusts are one of the most preferred solutions employed by U.S. medial professionals to protect their assets in lieu of malpractice claims being brought against them.

Trustee
The trustee is the official manager of the trust. Legally the Trustee must be independent from the Settlor, and exercises all rights of the offshore trust. However, the Trustee generally acts unofficially and in accordance with instruction from the Settlor. Emet Offshore Consultants advise that a separate agreement between the Settlor and Trustee is executed to officially state that the Settlor retain full control.

A Trustee that is appointed must be licensed to provide trustee services in the offshore jurisdiction. Emet Offshore Consultants maintains a network of long established and reputable nominee Trustees and are only partnered with notable Trustees.

Beneficiary
The Beneficiary is the person or persons who are the recipient of the assets from the trust. The Settlor can be named the only Beneficiary or alternatively, an offshore trust can have several beneficiaries. All entitlements to beneficiaries must be set at the commencement of the trust and can not be revoked or changed. Once the Beneficiary has received the assets from the trust he/she is then liable to declare this and pay due taxation. The Beneficiary can also receive regular payments from the trust, for example from the interest or can wait for the expiry of the trust and receive all assets and interest in full.

Offshore trusts have a maximum duration period of 99 years and can not engage in any form of business. Annual reporting is not required for an offshore trust and there is usually no minimum capital required in offshore jurisdictions.

Emet Offshore Consultants has extensive experience in forming offshore trusts in the most reputable domiciles best suited for your immediate needs and long term goals. Please contact info@emetoffshore.com to learn further advantages of an offshore trust and receive the most competitive rates.

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