What is Asset Protection
Asset protection is a set of legal techniques using common law to protect the assets of individuals and business entities from civil money judgments. The goal of asset protection planning is to insulate assets from claims of lawsuits, disgruntle family members, divorce, bitter employees and from creditors legally and in the most efficient way possible from tax.
Importance of Asset Protection
As a business owner you have worked hard to set-up your company and acquire your assets. Any good asset protection strategy is designed to specifically protect these assets for you and to allow you to pass on these assets to your beneficiaries. Hopefully this will not be for a long time.
What Is An Offshore Trust
An offshore trust as it implies is in an offshore jurisdiction. This gives you another layer of protection in that even if the local courts side with the plaintiff the second legal system in most offshore jurisdictions will ignore this ruling as foreign court orders are in most cases not recognized.
Offshore jurisdictions deliberately set-up their registries to protect personal information and are not open to public view.
Another advantage over domestic trusts is that you can be the grantor & the beneficiary.
How Do Offshore Trusts Work
A trust is an agreement between the person creating the trust (referred to as the (trustor or grantor) and the person responsible for managing the assets of the trust (the trustee). The grantor will transfer certain assets to the trustee, who will hold and manage the assets in trust for the benefit of another person, called the beneficiary.
While trusts have been around for a long time and have been used in many different asset-protection strategies. Although trusts fall into six main categories (living or testamentary), (funded or unfunded), and (revocable or irrevocable)
The two most popular type of trusts are revocable and irrevocable.
With a revocable trust the grantor reserves the right to alter the trust by amendment, or to dissolve a part or all of the trust by revoking it at any stage.
With an irrevocable trust as the name suggests the grantor has no such right. It’s this precise lack of control that makes the irrevocable trust a great legal defense against management and control cases by tax authorities and such a popular asset protection option.
Offshore asset protection trust jurisdictions
So, there are a few well know jurisdictions that deliberately designed the law to assist and protect the trust from legal challenges.
Belize, BVI, Cayman Islands, Cook Islands, Nevis, Chanell Islands and the Isle of Man and the UAE.
Offshore Trust Costs
Straight of the bat a trust is not cheap to set-up or maintain. On average I would ask clients to budget £8-10k year one & £5k+ from year 2 onwards.
Make sure any quote you receive includes the extras such as power of attorney & deeds of indemnity. The trustees will charge £150+ph so its best practice to get everything you want on the quote as otherwise the bargain you thought you had will quickly turn into a money pit.
Recently we have partnered up with a lawyer who specializes in UAE trusts that are under half this price and everything is included so obviously this is very popular.
How To Set-up An Offshore Trust
Although we have a high success rate in arranging introductions for these banks, we cannot guarantee they will approve your application. We always recommend that you remain open minded and have a first, second and maybe a third-choice preference in case.
Drop us a email at firstname.lastname@example.org
Peaks Moto “Make things Simple” shines through in everything we do. We want to take away the hassle from the client. Most of our clients come to us because they want to form an offshore company and do not know where to start. We are here to guide them and tall them through the jurisdictions that suit their needs best. There is not one size fits all answer & if someone is telling you otherwise head for the hills.
Many offshore jurisdictions offer the company my favourite tax rate 0%. The tax exempt status is linked to commercial activities outside the state of incorporation.
Although your information is in many cases held by the local registry & bank it is not public knowledge so this offers the beneficial owners privacy.
Some clients go for offshore company formation to protect their assets from creditors and other parties in case of litigation.
Offshore jurisdictions also offer the client less onerous regulatory obligations than a domestic company would. Some only require you to maintain a registered address and agent. There is no corporation tax, sales tax, annual return or even accounting obligations. This saves the client money & more importantly time & hassle.
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Our process begins with a thorough consultation to understand your business needs and objectives. We also provide an overview of the Irish business environment, regulatory landscape, and the costs associated with setting up a company.
Registration & Documentation
We handle all the registration paperwork, from company name check to drafting of Articles of Association and submission to the Companies Registration Office. We ensure every step is done accurately and promptly.
After Registration Services
Post registration, we provide services like tax registration, account setup, regulatory compliance guidance, and secretarial services. We aim to give your company a strong foundation.
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