The best way to protect assets offshore is to use a Special Power of Appointment Trust (the "SPA Trust") and a Nevis LLC.  These are the reasons why:

1. Because you have no ownership in the trust or the LLC, the assets of the LLC will not be included in any disclosure of your assets.

2. Because the SPA Trust and Nevis LLC are not required to file any tax returns, and because they are not included on your income tax returns, they will not be discovered through a review of your tax returns.  (You are, of course, required to report all of your worldwide income, but this structure allows you to do so without giving up your confidentiality).

3. Because the trust and the LLC are not filed with any state or local government, they will not be discovered through a search of the public records.

4. As long as you create this structure in advance of a problem, there is nothing fraudulent or unethical about the funding of this plan.

5. The SPA Trust provides away for the terms, conditions, and beneficiaries to be changed at any time.

6. This structure creates no income tax problems – it is income tax neutral.

7.  You can transfer unlimited amounts to the trust/LLC, without filing a gift tax return or paying any gift taxes. Your estate is also eligible for a step-up in tax basis upon your death.

8.  This structure involves no ongoing legal fees. The only ongoing costs are the renewal and registered agent fees in Nevis.

9. This structure is about a third the cost of an offshore trust in terms of set-up costs and about a fourth of the cost of an offshore trust in terms of annual fees.

10.  This structure avoids all the family complexities and the inflexible nature of a family limited partnership. Unlike a family partnership, the SPA Trust provides total protection if one of your children is sued, bankrupt, or divorced.  Your children don’t even have to know this exists.

11.  Unlike other alternatives, this can be terminated and the assets returned to you at any time, without cost or tax consequences.

12. After your death, this structure can continue to provide the same benefits for your spouse and descendants as long as they want to keep it around.

13. This structure can own and protect any type of asset.  　

14. The asset protection provided by a Special Power of Appointment Trust is based on legal principles that are well accepted in all fifty states, and have not changed for hundreds of years.  

15.  Because Nevis does not recognize a court order from the US, because Nevis does not allow foreign attorneys to appear in court, because Nevis does not allow contingency fees, and because Nevis has an onerous bonding requirement in order to bring a suit, it is very unlikely that anyone would attempt to pursue collection from a Nevis LLC.  

For more information about a Nevis LLC, see www.nevisllc.org

To see twenty cases that uphold the asset protection provided by a special power of appointment trust, click here: Law-and-Precedent-Supporting-the-Special-Power-of-Appointment-Trust

To read more details about the SPA Trust, click here: http://www.assetprotectionatty.com/articles/49-10-reasons-i-can-give-you-better-asset-protection

To read a recent article from Estate Planning Magazine about the SPA Trust, click here: Building a Better Asset Protection Trust/Estate Planning Magazine

I am Lee S. McCullough, III.  I do asset protection planning that is ethical, professional, efficient, and eminently effective. I will provide ongoing support for any plan that I create. If you are interested in asset protection planning, call me or send me an email with a summary of your situation and I will send you a free proposal designed just for you. This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it )