A trust is an instrument which is established for the sole purpose of laying down the rules that will apply to the distribution of your estate. The trust holds your assets for your beneficiaries. The objective is to reduce the tax liability, to provide protection for your estate and to avoid probate.
An offshore trust is no different except by setting it up in a financial center where you are assured of 100% confidentiality and additional tax benefits that are often associated with these jurisdictions. The arrangements for both onshore and offshore trusts are the same. This article will give you a more in-depth offshore trust overview to help you decide whether or not you need to protect your assets in a foreign jurisdiction.
Assets protection as the term goes means protecting your assets from creditors and lawsuits. A better explanation of assets protection would be pre-litigation planning to deter lawsuits and protection of your hard earned wealth.
Assets protection is one of the ways you protect your assets and preserve them for your beneficiaries. Assets can include property, cash, shares and almost anything that can be sold for cash. There are three basic categories; family home, business assets and investment assets.
Benefits And Assets
You should also determine which of your assets will go to the trust and what exactly you want the trust for. Form a trust deed or a written document that will contain these details. Then, ask your lawyer to cross examine the document. The final step is for you to choose a trustee to finalize and carry out the process.
Costs And Taxes
When an inshore trust doesn’t suit your needs, perhaps what you need is to move offshore. The common perception about offshore trusts, that it is only for multi millionaires and big corporations, is wrong. It is also suitable for medium to small scale businesses and individuals.
Many people have transferred to an offshore trust because the benefits are more attractive compared to the benefits received with an onshore trust. You should take into considerations offshore trust costs before you transfer your assets. Though the benefits are there, it is advisable to consult a financial adviser to determine offshore trust costs.
Trusts can be set up in a number of jurisdictions, both onshore and offshore.