How to Establish an Offshore Trust
Setting up a normal trust helps to ensure that your family is taken care of when you die. By setting up a trust offshore, you add an extra layer of protection for your assets. When you set up a trust in an offshore jurisdiction, you often avoid some of the legal issues that could arise when dealing with creditors and lawsuits.
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Instructions
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Locate a trustee in another country with whom you can work. Many financial planning companies and banks offer trust services to clients. Before opening an account, do some research to determine the country where it is most advantageous for you to open a trust account. Choose a country that is considered to be safe and secure. Research the individual companies that you are considering to ensure trustworthiness.
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Complete the necessary paperwork with your trustee to create the offshore trust. To facilitate this process, follow the rules of the foreign jurisdiction. Typically, you fill out a trust document with the help of the trustee or a lawyer. Sign the document in front of witnesses or a notary to make the trust official. In these documents, you specify what property should be included in the trust and who will inherit it when you die.
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Transfer ownership of the property to the offshore trust. For example, you may need to transfer money to the new offshore account that is owned by the trust. You may need to transfer the legal ownership of a piece of real estate to the offshore trust. Once property ownership is transferred, it is in the care of the trustee. When you pass away, the designated beneficiary or beneficiaries will receive the property.
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Tips & Warnings
When choosing the jurisdiction for your offshore trust, pick a country that does not charge taxes on income generated by the trust. Some countries ignore any judgments against you from the United States, so that creditors cannot retrieve your assets.
