Foreign Trustees and Protectors of Offshore Trusts
When you utilize an offshore LLC that is 100% owned by an offshore trust, you are appointed the manager of the LLC and control the assets and day-to-day activities of the business. During times of legal duress, trust provisions prohibit you from managing the LLC and therefore the assets within are protected. The trustee is duty bound to protect the trust assets and carry on certain business activity, such as paying the bills and services for current operations.
What this means is that your trust is written with instructions that clearly state the trustees duties as LLC manager, such as acceptable payees or overseeing the LLC checking account for operational and business expenses that have to be paid while you defend yourself in a lawsuit. Your trustee steps in as acting manager of the LLC and ensures timely attention to business and financial matters as instructed by your trust provisions.
Offshore Trust Protectors
The whole reason for creating offshore asset protection is to place your assets inside favorable legal jurisdictions. Naturally, your trust protector and trustee should not be subject to US court rulings. A trust protector is one more tool that can be implemented for even more flexibility. You can specify duties and responsibilities of your trust protector in the same fashion for your trustee. Trustees are selected by you, licensed and bonded trust companies provide trustee services for asset protection trusts. You can write your provisions so that you feel most comfortable with your asset protection plan and management model. This requires the counseling from a professional and should be undertaken carefully with sound advice.
