In order to achieve bullet proof asset protection, one must establish a strategy without the intent to defraud and utilize the strongest protective laws available. The most flexible, modernized and case law backed asset protection statutes are in offshore financial havens that cater to foreign investment through debtor-friendly legal framework.
When assets are protected in a foreign legal jurisdiction any court orders from an individual’s home domicile would not be recognized. Separating assets using an offshore legal jurisdiction is the biggest legal hurdle one can create to shield wealth from lawsuits and creditors.
All of the same estate planning legal tools and business entities are available in offshore financial havens often times with more benefits and stronger protection.
The strongest asset protection strategy combines the strengths of multiple offshore jurisdictions – the most secure banking, highest amount of corporate privacy and world’s strongest asset protection statutes can be implemented in a single strategy.
Opening a new banking account in the name of an offshore company immediately creates financial privacy while taking advantage of the most secure financial institutions. An asset protection strategy should not limit one’s availability or access to personal assets – ATM/debit, online banking, customer service, international investments and managed services are available in any offshore financial haven.
A company is used to control assets that are owned by the offshore business entity. The manager of the company controls the day-to-day affairs of the business, which include banking transactions, investments, distributions and transfers of funds. The corporate instrument allows an individual to be deeply involved in the management of assets while maintaining protection.
An offshore asset protection trust is the final layer of financial protection. A properly established strategy allows an individual to settle a trust for the benefit one’s self. These trusts are established solely for the protection of assets through custom provisions in the trust deed. An offshore trustee carries out the administration of the trust according instructions set forth in the establishment of the plan, instructions that include the distributions of assets can only be made for the benefit of the trust beneficiary(s).
An offshore trustee is key in the event of a lawsuit or litigation because the trustee is duty bound to protect the assets encumbered in the trust and is outside of the trust settlor’s home legal jurisdiction therefore not required to comply with any foreign court orders.
A judgment creditor would be forced to pursue your assets in the foreign jurisdictions. These protective havens frown on frivolous lawsuits and predatory legal behavior by making it extremely difficult, and expensive, to sue protected foreign investors.
A legal opponent would be forced to hire local legal counsel in the offshore jurisdictions where contingency cases are forbidden. Some countries require a bond of $25,000 to be posted in order for a case to be reviewed by a legal board that decides if it can proceed – if the case is not allowed to proceed the bond may or may not be refunded.
Assets protected with a properly established bullet proof strategy implemented prior to a judgment are nearly impossible to penetrate and are proven to protect assets in court.