djamal-soft
الخميس، 30 يناير 2014
An asset protection trust is a legal structure set up to protect your wealth. It allows for funds to be held for your beneficiaries on a discretionary basis until such time as they are permitted to use it. Almost any asset can be listed in asset protection trusts. This includes property, cash and securities.
These legal structures were first developed in England under the common law system. They were originally intended to minimize the amount of inheritance tax that a person would have to pay at their death when their estate transferred to the next of kin. The purpose was to separate the legal title from the equitable title. The legal title is given to the trustee, who holds the estate for the beneficiaries, who hold the equitable title to the estate.
One of the main advantages of these legal structures is that a creditor cannot claim any funds or property that is held in the estate of a beneficiary. This means that if the beneficiary owes debts, then the creditor must find other means of recovering those funds. The funds in the trust are generally always secured from court-ordered sequestration.
The ability of a creditor to obtain a judgment against the beneficiary is limited to their interests held in the agreement. Because the interests of the beneficiary are protected, this precludes the creditors from obtaining any property or money that has been set up for the beneficiary, even if the beneficiary has been declared bankrupt or has outstanding debts.
Sometimes these structures may be set up offshore, for example, in one of the Caribbean nations who offer certain tax benefits. These offshore trusts do not normally prevent legal action from occurring against an individual in their home country. Any court orders that are made under divorce or creditor advantage laws can still be made against an individual to re-coup funds owed. A judge may order a settlor to repatriate funds from an offshore jurisdiction if he or she determines that the settlor has control of the assets.
There are certain stipulations, however, as to what constitutes a valid trust vehicle. They must be irrevocable, which means that they cannot provide protection beyond what the settlor has the power to revoke. They normally also contain spendthrift clauses, which prevents the beneficiary from losing their interests to a creditor.
Other requirements that are imposed by law is that the estate structure must have at least one appointed resident trustee and some of the administration functions must be conducted in the state in which it was set up. Normally, a settlor cannot also be a trustee.
If you interested in setting up asset protection trusts, the first thing you must do is seek the advice of a competent attorney who practices in this field. Ensure that everything has been documented properly and that the legal deeds clearly identify the beneficiaries and the assets which are to be covered in the estate.
These legal structures were first developed in England under the common law system. They were originally intended to minimize the amount of inheritance tax that a person would have to pay at their death when their estate transferred to the next of kin. The purpose was to separate the legal title from the equitable title. The legal title is given to the trustee, who holds the estate for the beneficiaries, who hold the equitable title to the estate.
One of the main advantages of these legal structures is that a creditor cannot claim any funds or property that is held in the estate of a beneficiary. This means that if the beneficiary owes debts, then the creditor must find other means of recovering those funds. The funds in the trust are generally always secured from court-ordered sequestration.
The ability of a creditor to obtain a judgment against the beneficiary is limited to their interests held in the agreement. Because the interests of the beneficiary are protected, this precludes the creditors from obtaining any property or money that has been set up for the beneficiary, even if the beneficiary has been declared bankrupt or has outstanding debts.
Sometimes these structures may be set up offshore, for example, in one of the Caribbean nations who offer certain tax benefits. These offshore trusts do not normally prevent legal action from occurring against an individual in their home country. Any court orders that are made under divorce or creditor advantage laws can still be made against an individual to re-coup funds owed. A judge may order a settlor to repatriate funds from an offshore jurisdiction if he or she determines that the settlor has control of the assets.
There are certain stipulations, however, as to what constitutes a valid trust vehicle. They must be irrevocable, which means that they cannot provide protection beyond what the settlor has the power to revoke. They normally also contain spendthrift clauses, which prevents the beneficiary from losing their interests to a creditor.
Other requirements that are imposed by law is that the estate structure must have at least one appointed resident trustee and some of the administration functions must be conducted in the state in which it was set up. Normally, a settlor cannot also be a trustee.
If you interested in setting up asset protection trusts, the first thing you must do is seek the advice of a competent attorney who practices in this field. Ensure that everything has been documented properly and that the legal deeds clearly identify the beneficiaries and the assets which are to be covered in the estate.
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