What is a foreign asset protection trust?

A foreign asset protection trust is a trust that is set up outside of the United States and is used to protect your assets from creditors. Specifically in California, asset protection trusts can be used to protect assets from creditors, protect from unpopular politics, protect assets from marital dissolution issues, or protect assets from a possible lawsuit. By setting up a foreign asset protection trust, you can transfer ownership of certain assets such as bank accounts, real estate, or stocks to the trust. The trustee then holds the assets as the trust beneficiary and is responsible for managing the assets according to the trust’s provisions. Additionally, the trust can be structured to limit the ability of creditors to access the assets. A foreign asset protection trust is a complex legal instrument that requires the assistance of an experienced attorney or trust advisor. It is important that all terms and provisions of the trust are done correctly to ensure that all of the assets are legally protected. Additionally, it is important to note that the establishment of these trusts is not necessarily a tax avoidance technique and taxes may still need to be paid on any income generated from the assets.

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What is a foreign asset protection trust?

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