Popular crime TV shows have demonized the ideas of offshore asset protection and international trusts. They regularly paint the picture of greedy, illicit, tax-evading moguls perpetuating shady deals in obscure locations. Offshore Asset Protection Attorney Michelangelo Mortellaro of Mortellaro Law in Florida disabuses this notion.
What Is Offshore Asset Protection?
“Offshore” simply means “abroad.” An investor places assets outside their home country in jurisdictions friendly to foreign investors. Creditors or other plaintiffs wishing to pursue these assets are usually unable to do so under the laws of the friendly country. Therefore, your assets are safe from judgments. There are other reasons that offshore asset protection is attractive:
- Favorable tax laws and incentives
- Reduced risk and greater growth potential
- Asset diversification
- Significant cost savings for businesses
- Relaxed regulations
- Confidentiality
- More investment opportunities
- More estate planning advantages
There may be other distinct advantages for you or your business. Schedule a consultation with Mortellaro Law in Tampa, Stuart, or St. Petersburg, Florida, to learn more.
What Is An Offshore Asset Protection Trust?
An offshore asset protection trust, or international trust, is a robust form of asset protection for assets that can be transferred or are located outside the United States. This trust’s assets are beyond the reach of creditors or plaintiffs in the United States.
The basics of an offshore asset protection trust are similar to other types of trusts. Assets are placed into the international trust in a country with friendly trust laws toward international investors. The grantor sets up the trust and funds it, designates a trustee, establishes a protector (often required in international trusts), and lists beneficiaries. Many international trusts allow the grantor to list his or herself as a beneficiary. This allows you to retain control over the assets.
Where Should I Establish An Offshore Asset Protection Trust?
The best recommended offshore jurisdictions are those with laws friendly to international investors. Some of the most advantageous and secure include:
- Belize
- Nevis
- The Cook Islands
- The Isle of Man
- The Bahamas
These countries have international trust laws that provide the maximum asset protection for offshore investors, plus their political stability makes them economically stable and attractive. Tampa Offshore Asset Protection Attorney Michelangelo Mortellaro can discuss this more with you in a confidential consultation.
Diversification and Offshore Asset Protection
Offshore diversification is an extra layer of asset protection. Establishing accounts or trusts in varying jurisdictions protects your assets under two different sets of laws, each with its own significant protection measures. For example, you can establish a bank account in The Camans with an LLC to hold the accounts. Then, establish a trust in Belize to hold the LLC. You could even choose a Belize-based attorney to serve as trustee. You can still manage the LLC and enjoy control of the assets, but they are owned by the offshore trust.
This is completely legal in the United States and the other international jurisdictions while you enjoy significant layered protection over your assets.
Some Downsides to Offshore Asset Protection
If all these advantages have convinced you that you should take advantage of offshore asset protection, including an international trust, you must also consider a few downsides.
- Increasing Governmental Scrutiny: The United States government has enacted laws and provisions to try to recapture some of its lost tax revenue from offshore asset protection and investing.
- Steep Costs: Some offshore jurisdictions require land ownership, in-country corporations, and other registration fees to create trusts or other investments. The costs can add up quickly.
- Minimum Investment Levels: Many offshore accounts require hundreds of thousands of dollars as a minimum investment, and some up to one million.
- Complex Regulations: Offshore asset protection trusts and investments are not for novices. International laws are routinely complex and require an experienced and knowledgeable professional to ensure you are protected, and your investments are worthwhile.
Florida Offshore Asset Protection Attorney
Michelangelo Mortellaro is an experienced Florida Offshore Asset Protection Attorney with an encyclopedic knowledge of international asset protection and investment laws. He can explore the pros and cons of each option in various favorable locations and help you design the most robust protection strategy possible. Contact Mortellaro Law at (813) 945-6495 to schedule a confidential consultation at the office nearest you.