By 
The strongest Asset Protection strategy is the one that involves a Trust and an LLC. It helps you to remove your asset portfolio outside the U.S. legal system. In other words, it helps you to put your assets under a legal system that is considered to be the strongest in the world. With this type of asset protection plan, you can have 100% control over all your assets.
Speaking of an offshore company, you can consider setting it up in BVI or the British Virgin Islands. They are English speaking, an independent territory that provides several advantages to offshore companies.
How does it work?
Before moving on to the benefits, let’s first find out how it works.
- At first, the client needs to set up an offshore asset protection trust.
- This will help the client to gain control of the daily activities. Not just that but it also gives the client the chance to establish an Offshore Limited Liability Company.
- In the case of legal duress, the Manager of the LLC has to be removed by the Trustee, after which he is expected to take the responsibility to protect trust assets. The manager will be removed for the entire period during that time. Once the duress gets over, the Trustee can get the Manager back in his position.
What are the benefits of an offshore asset protection plan?
The main benefits of an offshore asset protection plan are as follows:
- It allows the client to control everyday activities. In other words, the client is the manager of Offshore LLC.
- When the Manager is under legal duress, the Trustee needs to remove him and take responsibility for the management of the LLC.
- The fraudulent transfer argument can be won by the clients as there is no transfer of assets involved.
- In case, assets are transferred, once the legal issues have already aroused, then the statute of limitations is 2-years.
From the above discussion, we get to know the various benefits of the offshore asset protection plan. If you are planning to set up an offshore company, you need to keep all this in mind.
