What is the difference between an offshore trust and a domestic trust?

An offshore trust and a domestic trust are two types of trust that are set up for asset protection purposes. An offshore trust is a trust that is set up and maintained outside of the United States, while a domestic trust is one that is set up and maintained within the United States, usually in the state of New York. An offshore trust is sometimes referred to as an international trust or a foreign trust. These trusts are used by individuals to protect their assets from creditors by placing them in a legal entity outside of the United States. This trust is usually based in a country like the Cayman Islands that has laws that are more favorable to asset protection. When an offshore trust is created, the person creating the trust transfers their assets to the trust, and the trust then protects their assets from creditors. A domestic trust, on the other hand, is one that is set up and maintained within the United States. This type of trust is regulated by state laws and is usually used when the assets being transferred are in the United States. These trusts are typically used to protect assets from creditors and can be revocable or irrevocable. In summary, the main difference between an offshore trust and a domestic trust is that one is set up and maintained outside of the United States and the other is set up and maintained within the United States. Both types of trusts can be used for asset protection purposes, but one is more favorable for certain situations than the other.

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