Attorney Blake Harris discusses Offshore Trusts.
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Offshore Trusts are an excellent tool for wealthy and middle class families to protect their assets. However, there are certain things you should know before creating an offshore trust. The first thing to understand when creating offshore trust is the purpose of that trust. There are two main reasons to create an offshore trust. The first reason is for asset protection planning. This is for keeping properties safe from lawsuits. These trusts are typically created in jurisdictions such as the Cook Islands or Nevis and these trusts are appropriate for individuals and families with a few hundred thousand dollars to a few million dollars in assets. The second type of offshore trust is for avoiding paying taxes. These types of trusts are typically created in places such as the Cayman Islands or the British Virgin Islands. These trusts are usually only appropriate for very wealthy individuals. This video will focus on the first type of trust, the trust which can be used for protecting your property from lawsuits. The second thing to understand when creating an offshore trust are the fees associated with that trust. In order to set up an offshore trust, the fees range anywhere from as low as $10,000 to as high as $50,000. Additionally, any offshore trust will also have annual fees. The annual fees associated with maintaining an offshore trust run anywhere from a few thousand dollars a year to as high as around $10,000 per year. These fees cover the services of trustees, protectors, attorneys, and bankers who can help safeguard your assets. The third thing to understand is the protection and benefits of an offshore trust. An offshore trust is an incredibly powerful tool in negotiating a settlement during a lawsuit. In jurisdictions, such as the Cook Islands and Nevis, laws are written in a manner which makes it very difficult for a plaintiff to collect on a lawsuit judgement. Most any rational plaintiff, upon learning the defendants assets are secured inside of an offshore trust, will either drop their case or be quick to take a settlement offer. If you would like to learn more about offshore trusts, please contact my office today at 720-924-6171.
