The Nevis government enacted an amendment to the Nevis Limited Liability Company Act in December, 2018. The amendment pertains to the taxation of Nevis limited liability companies that does business in Nevis. The amendment appears to be in response to international movements to restrict use of offshore tax havens. The amendment provides that Nevis LLCs …
Self-Created Impossibility of Compliance With Bankruptcy Court Orders
A federal bankruptcy court ordered a debtor to turn over to a bankruptcy trustee money the debtor had received from a property auction. Although initially admitting he received the money, at a subsequent contempt hearing the debtor said the had spent the money so there was nothing left to turn over. The court considered whether …
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Island of Nevis Substantially Amends LLC Ordinance
The Nevis limited liability company is an effective and efficient offshore asset protection tool. In May, 2015, the Nevis Assembly enacted an important revisions of the Nevis LLC Ordinance. The new law significantly improved asset protection benefits of forming a Nevis LLC. The new law is called the “Nevis Limited Liability Company (Amendment) Ordinance, 2015,”.
Florida Court Finds Jurisdiction Over Offshore LLC Membership Interest
An important rationale for offshore asset protection is effecting the removal of the debtor’s asset beyond the jurisdiction of U.S. courts. For example, people choose to form LLCs outside the U.S. because they believe a U.S. court would not have jurisdiction over the debtor’s membership interest in order to impose a charging lien. That theory …
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Court Issues Charging Lien Against Interest in Foreign LLC
Debtors set up LLCs in foreign countries to protect against creditor charging liens against their membership interest and distributions. During legal research this past week I came across a Connecticut case where the creditor found a way to effectively attach a debtor’s distributions from LLCs formed outside the U.S.
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State Court Finds Personal Jurisdiction Over Offshore Trustee
Proponents of offshore trust suggest that a U.S. creditor could not obtain jurisdiction over the offshore trust or its trustees. Many of my own clients believe that because a U.S. court has not jurisdiction over the offshore trust the court has no way to either discover trust assets or to obtain a judgment against the …
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Rehearing Denied: Sargeant Case is Now Law
I wrote a post about an important Florida appellate decision the restricted a creditor’s ability to go after a debtor’s assets situated anywhere outside Florida. The decision concluded that a creditor could not hold a Florida debtor in contempt of court for his failure to retrieve money and stock held outside the state. The creditors …
Debtor Relying On Offshore Trust Is Held In Contempt
Most offshore asset protection plans, and similarly complicated domestic plans, do not hold up if a motivated creditor pursues its attacks through a vigorous legal challenge including appellate review. Most appellate courts will not sustain the promised protection of offshore planning.
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New York Times Article on Cook Islands Asset Protection Trusts
The New York Times published an article this past weekend regarding Cook Islands asset protection trusts. The article suggested that these offshore trust provide excellent protection for even the most egregious debtors.
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Wall Street Journal Article on Offshore Accounts
Offshore asset protection, and specifically offshore bank accounts, are often topics of law journals and financial press. On Saturday, June 30, 2013, the Wall Street Journal published an article about offshore bank accounts. The Journal discussed wealthy investors trying to protect their estate from lawsuits by “stashing money” in offshore accounts in “exotic locales.”
