A good financial plan isn’t just about saving money to buy your dream home or retire early; it’s about protecting your and your family’s future. Lawsuits happen all the time throughout the United States, and unexpected events can leave loved ones in a financial crisis. With a bulletproof trust, you can rest easy and know your investment is safe and secure.
Is there such a thing as a bulletproof trust?
Before getting into the nitty gritty of trusts and asset protection, it’s important to realize that legally you’ll never be 100% bulletproof. Loopholes and dire circumstances are unfortunate parts of everyone’s life. However, trust funds like a Cook Islands Trust (CIT) and a Nevis Trust are the best options for those seeking resilience and reliability.
Of course, you can’t predict your future, but you can stay prepared with well-rounded asset protection planning. A trust can protect assets and individuals in a couple of common scenarios:
- Distributing inheritance after divorce: Many people share asset ownership with their spouse, which means one spouse can claim part of those assets after the other spouse’s death. This gets complicated when spouses divorce. With certain trusts, your children inherit your assets, regardless of your marital status.
- Providing support in financial hardship: Some people encounter financial difficulty after a catastrophe, while others face growing expenses and debt due to poor decisions. With a trust fund, you can save a beneficiary from these issues. Your assets will stay secure through difficult times.
Which trust offers maximum protection for trust assets?
If you research trust fund investments, you’ll soon learn there are multiple types of trusts, including domestic and offshore. Different trusts have specific pros and cons, but not all offer the same asset protection for an individual or business. Some will protect your wealth better than others.
You can establish a domestic trust according to the Supreme Court laws in certain U.S. states. This type of trust ensures maximum control over your assets because you can make changes as needed. However, domestic trusts don’t provide comprehensive security for your investments.
The individual who creates a domestic trust assumes the title of settlor. The settlor establishes rules for when a beneficiary can profit from assets and who will administer those assets if they become incapacitated before they pass away. Without another executor, a probate court will appoint someone to settle that person’s posthumous estate.
An offshore trust is a legal entity set up to allow you to hold assets for others’ benefit. These trusts can reduce your taxes or enable you to donate trust assets without tax penalties. Offshore trusts can also protect you and your family during claims and court battles.
Typically, people will establish an offshore trust to guard assets because an offshore trust protects against legal actions. The U.S. court doesn’t control offshore trusts in certain jurisdictions such as the Cook Islands and Nevis. Therefore, you can get legitimate legal protection by having an experienced lawyer draft your documents and trust fund properly.
Benefits and Features of an Offshore Trust
Offshore and domestic trusts have much in common, but an offshore trust offers greater protection as well as other benefits. You can use it to hold trust assets securely and make gifts to beneficiaries without worrying about legal threats. Here are specific benefits you can enjoy with an offshore “bulletproof” trust:
- Protection from a claim or lawsuit: You can protect your money against claims and lawsuits by establishing an offshore trust under a different nation’s governance. A trustee manages your account and defends it for you.
- Planning for taxes: Offshore trusts won’t exempt you from paying taxes or IRS reporting. However, you can minimize your total tax liability in the same manner that domestic trusts allow you to reduce your taxes.
- Investment freedom: An offshore trust isn’t bound to the same laws as a domestic account. This means your trustee can invest trust assets in other areas, such as offshore banking and other investments unavailable to U.S. citizens.
What about creating an LLC?
Limited liability companies (LLCs) are businesses that protect their owners from personal liability associated with running that business. These businesses are similar to big corporations because they have a separate legal existence, but LLCs often don’t have to pay double income tax like corporations. While an LLC can safeguard your assets and privacy, it doesn’t provide asset protection as well as trusts.
LLCs can keep your company protected from some lawsuits but not all creditors. If one of your corporation members passes away without leaving money for creditors in their estate plan, other members may be required to settle all the debts owed by this person and his estate. You could lose your assets if someone else loses their life and can’t take care of their debts.
Won’t a domestic trust be enough?
If you’re looking for a bulletproof trust, you may wonder, “Won’t a domestic trust be enough to protect my assets?” While a domestic trust can keep you legally protected, it does not provide the same level of asset protection as an offshore trust. You’ll want an offshore trust for maximum protection.
With a domestic trust, the trustee remains subject to U.S. court orders. With an offshore trust, a trustee is not subject to U.S. court orders. Offshore trustee-managed accounts greatly limit a creditor’s power to access funds held within the trust.
Combining a Trust With Other Asset Protection
What is the best way to safeguard your assets? Here are a few strategies that can be used in combination with an asset protection trust:
- Registering your business as an LLC.
- Funding an individual retirement account (IRA) or 401(k).
- Diversifying your assets with other non-liquid investments (such as precious metals).
- Having an umbrella insurance policy to safeguard against personal injury and property damage claims.
- Utilizing any homestead exemption, annuity, or life insurance benefits your state may offer.
- Keeping your business assets separate from personal income, thereby avoiding potential legal complications in the future.
Blake Harris Law’s Titanium Trust (™)
If you want to keep your assets safe, consider investing in the Titanium Trust(™) from Blake Harris Law. Our Titanium Trust(™) provides the security to manage your assets in the United States and the flexibility to move them offshore if ever needed. You can enjoy a high level of protection without necessarily sacrificing control.
The Titanium Trust(™) enables you to hold assets in the U.S. and plan for a bright financial future. If a creditor, lawsuit, or other legal risk threatens to take your cash, you can quickly relocate it to an offshore jurisdiction. We’ll keep your best interests in mind and help draft your trust in the Cook Islands, Saint Kitts and Nevis, and other highly acclaimed jurisdictions.
Consulting an Attorney for Bulletproof Asset Protection
Are you looking for a bulletproof trust to protect your assets and give your family security for the road ahead? While there is no guarantee that any trust is bulletproof, at Blake Harris Law, our experienced attorneys provide the legal services our clients need to place them in a better position to protect them from claims, lawsuits, and other potential legal threats. Email us at Info@BlakeHarrisLaw.com to schedule an initial consultation.