What is the best way to protect assets via offshore trusts?
Asset protection with offshore trusts is e priority
Some people are at greater risk than most. For example, entrepreneurs run personal financial risks related to loan guarantees for their business. And they can be prosecuted, just like the professionals, who are responsible for their actions: the architecture of a building, a surgical procedure, the audit of an accounting statement, investment advice. For each of their commitments, they involve their residence, their investments, their RRSPs … Liability insurance includes ceilings and exclusions. The search for effective protection of assets is no longer limited to the transfer of assets to a spouse or the creation of a management company.
The recession is causing a credit crunch and an increase in business risks. In this context, protecting your assets is a priority. The establishment of trust protects personal property from prosecution, whether by creditors or by clients. By creating a trust, the entrepreneur or the professional effectively transfers the ownership of their property to the trust in order to have nothing more to possess. The trustee then receives this wealth which he will have to manage – according to the act of the trust – for the benefit of the beneficiaries alone. He who transfers his property to a trust may be the beneficiary, as well as any person he designates. Recipients may receive income or property from the trust. These do not belong to anyone: neither the trustee, nor the beneficiaries, nor the former owner of the assets. No one can claim any benefit from the trust. Only the trustee can decide how often to distribute income or assets in accordance with the rules of the trust deed. Trust has a life of 21 years.
An asset protection trust must be established when all is well when your assets are higher than your debts and most importantly when the transfer does not make you insolvent. Get more information at https://offshorecitizen.net/asset-protection/.
To protect your property, the trust must be established at least two years before any lawsuit. Your tax and estate must be carefully planned when you set up your trust. The consequence of protecting your assets is the impoverishment of your personal balance sheet: you have nothing left. The negotiation of loans then requires much more explanation. At the same time, it is the best protection against prosecution: no one can seize property that you no longer have!
What to put in the trust?
Property to never transfer to a trust: your retirement savings vehicles (RRSPs, RRIFs, LIRAs, LIFs).
Assets you can transfer investment portfolio, cash; principal residences (maintained exemption) and secondary residences; income properties; shares of private companies.
Who chooses the trustee?
The trustee must be a person of trust. It has the power to distribute both income and assets of the trust to the beneficiaries of the trust. The trustee must manage the assets according to the terms of the trust indenture.