Asset Protection Planning: Utilizing Offshore Structures

What is Asset Protection?

Asset protection involves discovering and applying a lawful series of procedures that protect your assets from spurious claims and future creditors. The procedures being utilized should be designed to deter a would be attacker from going after your assets, and if they do, make it extremely difficult and expensive for them to actually collect judgments against you. Without a proper asset protection plan a lifetime of wealth can be wiped out with one failed lawsuit.

In the event that a large amount of money is involved, asset protection planning will include a series of trusts or foundations, partnerships and offshore entities to hold legal title over your assets thus removing you from actual ownership. A properly set up asset protection plan will make creditors come to the realization that it will be difficult if not impossible to pursue and collect on a claim against you.

There is a fine line between legally protecting your assets and actions that defraud creditors so it is imperative that you utilize the services of an attorney or law firm when creating a proper asset protection plan. Working with a law firm has the added benefit of client - attorney privilege which protects any communications between you and the firm as confidential.

Offshore Asset Protection

For people that have large estates to protect offshore trusts can be utilized to offer a high degree of asset protection and privacy. Common destinations for these offshore trusts include; Panama, Isle of man, Bermuda, Bahamas, Gibraltar and the Cayman Islands.

When you establish a foreign trust you are essentially transferring ownership of your assets to the foreign trust which has foreign trustees who manage this entity from an offshore jurisdiction.

In the event that a creditor begins looking into your assets and discovers the foreign trust they will have to deal with the foreign trustees in order to get at the assets owned by the trust. In order to file litigation against the trust a would be creditor will have to go to a court in the jurisdiction where the trust was formed. Courts outside of the country where the trust has been set up have no jurisdiction over these entities and hence cannot provide relief to creditors.

Asset Protection Techniques Applied

The best approach to asset protection is to form a limited partnership with multiple entities grouped together spread over several jurisdictions. In this case, creditors are forced to break through several layers of protection before they are able to attack your assets. When an attack comes on the outer layers of your asset protection plan you will know about it and be able to do something before you find your assets frozen.

Multiply layer and multiple jurisdiction structures also keep spurious or casual creditors at bay since only extremely well financed and sophisticated creditors will have the resources to penetrate these multiple entity structures. You will find that the costs associated with setting up multi-layered structures is much more expensive but the protection offered can be astronomically higher.

Asset protection strategy can vary greatly depending on your country of citizenship, age, annual income among other factors so it is imperative to utilize the services of an asset protection attorney who is able to fully understand your personal situation and goals.

Asset Protection
Asset protection attorneys specializing in offshore asset protection in Panama.