Benefits Of An Offshore Trust

An offshore trust is one method to protect assets. Establishing an offshore trust involves physically transferring assets to a trustee located in a foreign jurisdiction. Once an individual's assets have been transferred to an offshore trust, a trustee manages and makes substantial decisions regarding the trust funds. Because a trustee must act in accordance with the best interests of the trust beneficiaries, a trustee may refuse to disburse funds when requested by a creditor.

Additionally, if a creditor attempts to seize assets overseas, the creditor will be required to abide by the laws and procedures of the foreign country in which the trust is located. Because foreign trusts are established in countries whose laws emphasize privacy and creditor protection, creditors most often will have an uphill battle to try to reach trust assets.

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