International Asset Protection Trust

What is a Trust – The Trust has its basic roots in English Trust Law. International Asset Protection Trusts provides a legal structure that is so flexible that the only limitation to its practical use and application is the creativity of the trust practitioner and creator of the trust. A trust is a legal entity created in writing. You and the trust are separate legal entities. Any asset you transfer from yourself to the trust then becomes property of the trust. The trust then holds the property for the benefit of the beneficiaries, which may or may not include yourself. You protect yourself and the trust assets by being the protector of the trust so there are acceptable checks and balances to mitigate risk substantially.

Beneficiaries of a Trust - Beneficiaries can be natural persons or judicial persons like corporations, foundations or other trusts. Income derived from assets can be designated to go to the beneficiaries of the trust. Intellectual property can also be designated to belong to the trust and in turn the beneficiaries of said trust.

Trustor – The person turning their assets over to the Trust is called the Trustor. He or she is trusting their assets to the trust. Sometimes the term “Settlor” of the trust is used instead and also the term “Grantor” can be used as well. They generally refer to the same person.

Trustee – The person responsible for managing the trust is called the Trustee. He or she is being trusted to handle or manage the assets of the trust.

Protector of a Trust – This is an office that was created for offshore trusts so it is relevant here. The protector is a person appointed under the trust instrument to restrain or control the trustee(s) of the trust ensuring that the trustee(s) manage the trust according to the guidelines set forth in the trust documents. The protector need not be a beneficiary of the trust. Most clients elect to become the trust protector themselves thus overseeing the operation of the trust making sure the trust is operating for the benefit of the beneficiaries of the trust. The protectors’ office is not a publicly disclosed one. The protector can exert the following controls over the trust and trustee:

1. Protector can remove and appoint trustees as per the trust documents.
2. Protector can approve trust distributions or asset sales according to the trust parameters. Protector can approve or refuse investment recommendations for the trust.
3. Protector can terminate the trust or approve its termination.
4. Protector can block distributions to beneficiaries. If a beneficiary is being sued, in bankruptcy or divorce or other financial distress the protector can block the distributions until this distress is alleviated at some point down the road. If a person is medically incompetent temporarily or permanently the protector can block distributions as well.

Uses of A Trust – A trust is an asset protection tool. Most of our clients will use the trust to hold the shares of stock from a corporation we formed for them or another corporation they had. This removes the ownership of the shares from them and places it into a trust. You and the trust are two separate and distinct legal entities. A trust can also be used as the beneficiary of a foundation thus enabling you to say you are not listed as a beneficiary of a foundation. A corporation can have its shares owned by a foundation, which in turn has the trust as a beneficiary of the foundation, and you are not listed as a beneficiary of the foundation. The beneficiary of one trust can be another trust. The possibilities are endless. You can easily control the trust yet at the same time the trust is a legal entity separate from yourself.

Trust Recording – We use trusts that are not required to be recorded in any public registry or database. This allows the trust to be unknown to anyone unless you tell them about it. This can have a powerful surprise factor if you are in litigation. The other side may assume you own shares of a corporation and at the last minute you can surprise them by stating you do not own the shares, a trust does. Then they have to see the trust and since this is not recorded in any registry or database this can be tough to accomplish without your cooperation. Now if the trust has a beneficiary listed other than you like a anonymous corporation, anonymous foundation or another trust, the opposing lawyer will pull their hair out trying to figure out what is going on. You are only limited by your creativity.

Legal Basis and Authority - The legal basis and authority for the trust is English Common Law in Anguilla. When a trust is set up under the laws of Anguilla the court shall not be able to create any variance or modifications thus affecting the trust. The court shall not be able to set it aside. The court shall not recognize as valid any claim(s) directed at the assets of the trust pursuant to the laws of any other country or jurisdiction. The court shall not recognize or give legal standing to any order or ruling of any court in another jurisdiction relative to: any act of marriage, divorce or any other form of marriage termination, succession rights, any claims exerted by creditors or alleged creditors in any insolvency action, and pertaining to the imposition of any foreign taxes or duties. The protections afforded are vast and broad.

Time Frame – Trusts can be created in 7-10 days

Documentation – Notarized copy of a passport and driver license.

Cost - $1250 includes trust strategizing, trust creation and trustee fees.

Order – Click here for order form.