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

Asset protection strategies involve legally protecting one’s assets from creditors, taxation, law suits, and other liabilities. There are two main categories of asset protection strategies: U.S. and international. U.S. asset protection strategies are mainly comprised of different legal techniques used in a particular state. In South Dakota, for example, the asset protection laws state that any asset held in a trust is no longer owned by the individual and is thus protected from creditors. Other strategies can include forming a limited liability company (LLC) or using exemptions. International asset protection strategies, on the other hand, involve transferring assets to entities registered in foreign countries. This is often done by moving assets to a place with more favorable asset protection laws, such as an offshore trust, to avoid creditors and taxation. As a foreign entity, your assets can be further protected by establishing a “protective jurisdiction”. This tactic involves registering assets in countries with higher asset protection guarantees, such as the Cayman Islands. In conclusion, the main difference between U.S. and international asset protection strategies is the degree of protection and the location of assets. U.S. asset protection strategies are governed by the laws of the state and involve legal techniques such as trusts and LLCs. International strategies involve moving assets to entities registered in foreign countries to gain access to more favorable asset protection laws and protective jurisdictions.

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

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