What are the differences between U.S. and international asset protection strategies?

Asset protection strategies refer to any action taken to protect one’s assets from seizure by creditors. In the United States, asset protection strategies mainly focus on exemptions from federal bankruptcy laws, such as exemptions for certain categories of property, and on preemptive protection strategies, such as placing assets in irrevocable trusts. International asset protection strategies may involve creating different types of trusts or other entities in foreign countries to hold assets or to transfer assets out of the reach of U.S. creditors. International asset protection strategies may also involve the use of offshore banking and other financial services located in countries with more creditor-restrictive laws than those in the United States. Additionally, foreign investors may be able to take advantage of special tax-avoidance provisions or foreign laws that may limit the ability of U.S. creditors to get access to their assets. In South Carolina, asset protection is primarily governed by federal and state laws. However, South Carolina does have a limited Homestead Exemption, which allows residents to protect a certain amount of personal property from creditors. Asset protection strategies based on foreign laws must be approved by the courts in South Carolina and may not be available in all circumstances. Additionally, South Carolina does not recognize foreign-created trusts and does not provide for foreign-based asset protection strategies, such as offshore banking and financial services.

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What are the differences between U.S. and international asset protection strategies?

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