International Asset Protection is the legal process of titling both your personal and business assets to put them beyond the reach of future potential threats and creditors using International Trusts, Limited Liability Companies, and/or other similar entities. International Asset Protection, which is coupled with Domestic Asset Protection, is gaining more and more popularity in today’s litigious society. International Asset Protection typically consists of an International Asset Protection Trust (“Trust”) and/or an International Asset Protection Limited Liability Company (“LLC”) depending on the type of assets an individual owns. International jurisdictions are great for Asset Protection because most international jurisdictions won't recognize or enforce U.S. judgments and also have special laws that require a creditor to post a bond before they can sue. Some jurisdictions even require creditors to hire local counsel on a retainer fee arrangement (because contingent fees are not allowed). Each type of transaction has its own distinct key parties and is described in more detail below.
Key Parties in an International Asset Protection Trust
The International Asset Protection trust is an International Asset Protection strategy that allows assets to remain safe from creditor attacks. The individual who sets up the Trust is called the settlor or grantor. The individual(s) who are appointed to care for the property that is funded into the Trust are called the trustees. A Trust protector is an individual designated to be the neutral party in between the trustee(s) and beneficiaries. The Trust protector often acts as the checks and balances system to ensure that the assets are kept safe for beneficiaries. Beneficiaries are the individuals who are designated to receive the assets of the Trust at a specified point in time.
Key Parties in an International Limited Liability Company
The International Asset Protection LLC is incorporated with certain individuals or business entities (in some circumstances) as members or owners. The International Limited Liability Company also has managers, similar to the Domestic LLC. The Limited Liability Company is a good alternative to the International Asset Protection Trust because it allows for enhanced flexibility in management structuring and also allows for privacy (similar to the Trust).
If you are interested in learning more about international asset protection using trusts and/or LLC’s or for more information on Asset Protection, Estate planning, Business Law and/or Probate please contact the attorneys of The Presser Law Firm, P.A.