Foreign Trusts

Foreign trusts have become popular in estate planning. Foreign trusts are great asset protection strategies because if your assets are in foreign trusts, creditors would have to sue you in the country where the foreign trusts are held to get access to your foreign trusts.

The best foreign trust

The best foreign trust has flight provisions that require the trust to be removed to another jurisdiction if there is a lawsuit against the assets in the foreign trust. The best foreign trust makes it hard for creditors to follow the trust and get access to any assets in it. However, even the best foreign trust does not offer perfect protection against lawsuits and liens.

There are lawyers and law firms specializing in foreign trusts and how to get assets out of foreign trusts. Even the best foreign trust is vulnerable. The same applies to off shore trusts.

Real estate and foreign trusts

Some people believe that if they transfer a US real estate property to the best foreign trust, the real estate property will be safe. This is not so. The US Supreme Court has ruled that the laws of the state where the real estate property is apply even though the real estate property is in a foreign trust.

Foreign trusts have to comply with foreign laws

When your assets are kept in foreign trusts, the foreign trusts have to comply with the laws of that foreign country. This is not always problem free. The foreign government can seize your assets if problems should occur.