Of relatively recent origin, the Offshore Asset Protection Trust (OAPT) is the ultimate asset protection tool. With the goal of putting as much distance as possible—both literally and figuratively—between one's assets and future potential creditors, the OAPT can be designed to allow a client to retain control and enjoyment over his assets while locating title to those assets in a trust established in a foreign jurisdiction, out of reach of unknown potential future creditors.
The protection afforded by the OAPT is based, in part, on the fact that certain foreign jurisdictions do not recognize the judgments of United States courts. Thus, if a person wins a lawsuit in the U.S. and seeks to enforce that judgment against the losing party's assets held in a foreign trust, the foreign trustee will not be required to submit to the jurisdiction of the United States court and cannot be compelled to surrender the trust assets. Rather, the creditor will be required to retry the case in the foreign jurisdiction where the trust is located. Faced with such a prospect, the creditor will usually walk away entirely or settle the suit for pennies on the dollar.
A critical point to remember is that an OAPT may not be established to defeat the claims of a client's present creditors, nor may it be used when events have already occurred which may give rise to litigation and liability. For these reasons, it is important to establish an OAPT before any threat of such trouble arises. The OAPT is not designed to offer any tax advantages; its objective is to provide creditor protection for one's property. Therefore, there are no income, estate, or gift tax benefits to be gained by establishing an OAPT. On the other hand, as with the revocable living trust, any property placed in an OAPT will not be subject to probate on the trustor's death.
The OAPT is more costly to form and administer than most other estate planning tools. It requires that at least one trustee be a trust company located in the foreign jurisdiction. With the availability of other asset protection techniques, the OAPT is suggested only for those clients with substantial liquid assets or, in some cases, where there is real estate, which may be easily encumbered. If you are included in this category, you may find the OAPT to be an excellent tool for providing you with some peace of mind. Some of our clients prefer to place "liquid" assets with the offshore trust and maintain their U.S.-based real property in their Nevada Asset Protection Trust. Proper advice in these matters is critical.
We are so happy with the experience with the team at Jeffrey Burr's firm. We were treated very professionally and the process was so quick and painless. If you are putting off creating a Trust and putting your life in order, don't hesitate to call this firm. Our sincere appreciation for your service.
Expedited this because I had an impending surgery…thanks! Derek explained everything very clearly. He was very patient and listened to all my concerns.
Timely responses to all of my questions. Knowledgeable and professional.
Service was wonderful by all employees. You can tell they care about the person in front of them.
The ease and convenience. Derek was excellent at explaining the details of our trust and the process.
Mr. Hunsaker was very knowledgeable. He listened to our request and was very good in his explanations.
Attentiveness, flexible meeting times, promptness.
Everyone was professional, friendly and helped us get our Will and Trust updated just as we needed.
Very professional, flexible scheduling, thorough, responded immediately to inquiries, excellent price for services rendered.
Extremely keen knowledge of probate and trust administration.
Rebecca Haines was very professional. We both felt our experience with her was in both of our interests.
Very professional manner in dealing with me. Thorough. Competent. They listened to my input and followed my wishes. Suggested excellent improvements to my previous Washington State will.
Friendly, courteous, helpful in answering questions and most importantly, trustworthy. Mr. Hatch and his paralegal are the nicest people I have ever dealt with. I would recommend them to anyone I know.
They were able to resolve my issue with the IRS completely that I had attempted to do many times prior.
"Very professional on preparing my trust"
"Not feeling rushed. Derek did a great job clearly explaining everything asked of him."
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"5-star rating in my book. I could never have done it without your office staff."
"Professional staff, listened to requests, answered ALL questions, made sure I understood."
"Handled with the best ease under the circumstances. Very compassionate, however, straightforward, thorough handling of paperwork."
"The staff at Jeffrey Burr were exceptional. They were outstanding and compassionate. I would recommend the firm to others. Thank you for all your help."
"Everybody was friendly and explained things in simple terms."
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"Revised documents as necessary and was thorough in explaining."
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"Very competent, friendly, Ms. Haines even stopped by my condo to notarize a statement for Bank of America, saving me a long drive to your office."
"Early on discussion of what to expect. All questions immediately addressed as well as genuine care for my situation."