What is the difference between a domestic and foreign trust? West Palm Beach Asset Protection.
Are you considering setting up a trust for asset protection? A standard West Palm Beach trust set up may not be sufficient for your purposes. You may be interested in setting up and off shore trust but do you know how? What benefits does an offshore trust have compared to a West Palm Beach trust?
Foreign Trusts
- There are a number of countries with favorable laws that debtors use to protect their assets.
- This one of the biggest reasons people in West Palm Beach are choosing to use foreign trusts as opposed to domestic trusts.
- There are several things to consider before you elect to use a foreign trust though.
- For example the costs are going to be much higher, and are they worth it?
- For one thing if you are trying to create a tax shelter you should be aware that these trusts do not shield you from your tax obligations.
- Furthermore these trusts are very costly to administer because often times you will create trusts in small countries with favorable laws but then place the assets into a Swiss or other bank account.
- What countries are common venues for foreign trusts?
- A lot of fuss is coming out about the Cook Islands trusts which have been around for years.
- Also a small country called Nevis is very popular.
- The truth is many countries have created laws to allow for foreign trusts that may be able to protect your assets.
- Keep in mind these trusts will require you to elect a foreign trustee and possibly a foreign protector of the trust.
- How is this difference (and maybe worse) that a West Palm Beach trust?
West Palm Beach Trusts
- It is true that a West Palm Beach trust cannot offer the same level of protection from seizure that a foreign trust offers.
- That being said you may not need that level of protection and if you elect a foreign trust, you will be paying for that protection.
- West Palm Beach trusts will be less expensive to administer and you may be able to act as the trustee yourself!
- Furthermore these trusts and assets will stay here where you can be more aware of what is going on.
- Many West Palm Beach residents are uncomfortable with the idea of all of their assets being shoved off shore to some small country they have never heard of.
- To me this sounds like a reasonable fear to have!
- The point being, are there benefits to a foreign trust? Absolutely.
- Do you need those benefits? It depends, if you are unsure talk to an experienced Palm Beach probate attorney who can help you with your estate plan.
- Asset protection is important, but you should not pay for more than you need!
Want to read an interesting article about foreign offshore trusts and asset protection?
Check out this recent article on them out of the New York Times.