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.”
It is difficult for creditors to garnish an offshore bank account because U.S state courts do not have jurisdiction to issue a writ of garnishment against a foreign bank with no U.S. branches. Keeping cash out of creditors’ reach would not be difficult if all one had to do was open a foreign bank account …
One my clients hired me for offshore asset protection advice after having purchased offshore real estate many years ago. The client had bought a second home in Aruba for all cash. The home was titled in the name of a Panamanian corporation.
People who are considering offshore asset protection understandably prefer a plan that is simple and that maintains control over their assets.
A client told me he had purchased a vacation condo in Central America and titled the condo in an offshore trust which he had established himself in a Carribean island. The client had found an offshore company to act as trustee.
I’ve said before that I have learned about some of the cleverest asset protection tools from my clients. An new asset protection client owned a very successful internet based business. The business generated revenues of over $ 1 million each month- that’s $12 million or more annually.
Some of my clients come into my office with tips and tricks they have learned themselves which they believe will protect assets. People think that they can protect cash simply by depositing the money in an offshore account; Swiss bank accounts are the most popular.
Over the years I have recommended Nevis limited liability companies to many asset protection clients. Most people who have formed a Nevis LLC has asked about how and where his money will be invested within the LLC entity.
Setting up an offshore trust or a limited liability company involves hiring a trustee or LLC manager in a foreign jurisdiction. The offshore entity works well only if the debtor owner/beneficiary irrevocably gives the offshore manager control over the LLC and investment of LLC assets.
Many of my clients have used Nevis limited liability companies as part of an asset protection plan.