For many business owners, the strongest asset protection scheme that can be established is an offshore strategy that involves a Limited Liability Company and a Trust. This kind of setup removes the entirety of your asset portfolio out of your home country’s legal system and into a legal system you feel has the strongest asset protection laws or at least has a stronger set of laws than your originating country.
An offshore asset protection plan will ideally provide enhanced protection of the assets but also some level of control and oversight in terms of the ongoing affairs of the legal structure. For instance, the offshore Trustee may be overseen by a trust protector, guardian or enforcer and the offshore Trustee may also appoint an asset manager desired by the client.
With an offshore asset protection plan, any legal opponent who has a vested interest in your wealth will have to get through huge hurdles to threaten your ownership. Because your assets are located and are under the laws of another jurisdiction, they are protected by that particular jurisdiction’s legal system. This means that if and when they are pursued, the pursuer will have to deal with the unfamiliar legal territory, travel expenses and more. This also means hiring local representation as their attorneys usually cannot work in the foreign jurisdiction. This alone can detour huge legal pursuits and if and when the case goes to court, its statute of limitations may also be applicable if the case was not brought within a timely manner. With such huge legal hurdles to overcome, your wealth and assets are the safest when under offshore asset protection.
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