Asset protection trusts are the most widely used legal entities to protect assets during the planning and from creditors. When you use foreign assets protection trust, you have the option of moving your assets out of harm’s way. Before you choose a foreign trust, you are required to choose which of your assets will go to the trust and what exactly you want to use it for. Using a foreign trust is becoming the best way to protect assets due to the instability of the economy being witnessed in recent times. If you haven’t thought about using a foreign assets protection trust, here are a few benefits you may be missing out.
Using a foreign assets protection trust gives you the ability to wholly own a limited liability company. When you form a trust in conjunction with a limited liability company, you get the option of transferring all your assets to the company, making you the manager along with the ability to control the assets. This is a way of ensuring your assets are protected because the trustees are unable to respond to foreign judgments. The use of foreign assets protection trust is beneficial because it ensures all your assets are protected from unfavorable conditions like divorce, economic instability and creditors among others.
Using foreign assets protection trust is beneficial because it will ensure you have access to the assets even under legal duress. Even though the trustee will be in control of your assets held within a limited liability company, they can still transact on your behalf for things like paying bills or paying off a friend because they are not bound by legal judgment. Using a foreign assets protection trust is advantageous because you will enjoy financial privacy. Most domestic trusts are often bound by the laws of country which may require them to disclose financial information but this does not apply to foreign assets protection trusts.
Settlors often enjoy peace of mind when they choose foreign assets protection trust over the domestic ones. This is because there are assets confidentiality in these foreign trusts that you can enjoy from a local one. When you sell your property or make an investment you will be required to pay excessive taxes sometime. However, choosing a foreign assets protection trust can help you avoid paying these excess taxes when you make an investment because you avoid dealing with capital gains and corporation taxes.
Perhaps the biggest benefit of choosing a foreign assets protection trust is the fact that they do not recognize foreign judgments. This is different from domestic trusts which are usually bound by the laws of the country. Such foreign trusts are only bound by the laws of where the trust was established. Using foreign assets protection trust will help you avoid probate; all the expenses and delays associated with probate are avoided because the trust is outside the country of residence. Finally, foreign assets protection trusts are beneficial because they treat everyone equally which assures protection for the weak. If you have never given thought to use a foreign assets protection trust, perhaps it is time you did do. These are the benefits of using foreign assets protection trust.