Using Offshore Trusts: Asset Protection in a Litigious Society

By Michael D. Wild

Anyone who has property or assets valued over $300,000 should

consider protecting them from a possible lawsuit. Litigation has become

a popular means for the accumulation of wealth. We see it on television

every day; people "recover" exaggerated sums of money for just about

any reason. Today, if a person believes there is any possibility of

obtaining money by means of a lawsuit, they will file a lawsuit.

Defendants in a lawsuit settle without ever doing anything wrong

because a defense attorney usually charges on an hourly basis. It is less

expensive to settle than to litigate and defend yourself against the claim.

Plaintiff's attorneys, on the other hand, are likely to take the case on a

contingency basis. Many times claims are filed because the plaintiff has

nothing to lose.

When an attorney discusses a possible lawsuit with a prospective client,

the lawyer will look at the probability of success. If probability is low,

he or she will not take the case; if the probability is high, the next thing

the attorney does is investigate whether the defendant's assets are large

enough to justify investing his time in the lawsuit. If the assets are small,

the amount recovered would probably be small. As a result the attorney

will probably decline the case.

In South Florida Contact Wild Felice and Pardo

Fort Lauderdale Asset Protection & Estate Planning Attorneys

One way to protect your assets is through offshore trusts. Trusts

originated in medieval times when English nobles entrusted their lands

and wealth to friends and other close relations before they went on

crusade in order to ensure that their families were provided for during

their absence. Over time the Trust has developed into the legal entity we

know today. In the last few decades, the offshore trust has become

popular. However, its improper and illegal use by some has given it a

bad reputation as an asset protection tool.

There are many reasons why an offshore Trust can is an effective asset

protection vehicle. The main reason to go offshore is because the

countries that cater to asset protection don't enforce U.S. judgments or

liens. As a result, a creditor must litigate their claim within the foreign

jurisdiction. For practical and economic reasons it is unlikely that a

creditor will pursue the claim outside the United States.

The misconception about offshore trusts comes about because many

falsely believe that an offshore trust will avoid having to pay income

taxes. They have tried to unlawfully evade U.S. income taxes by using

"secret" offshore accounts. Recent IRS measures are making it

increasingly difficult to keep these accounts secret. There is nothing

inherently wrong with offshore accounts. However, they cannot be used

for tax evasion. Failing to report income and paying the appropriate tax

can have devastating consequences.

In South Florida Contact Wild Felice and Pardo,

Fort Lauderdale Asset Protection & Estate Planning Attorneys

When an offshore trust is part of an advanced plan it can legally and

ethically safeguard your assets. Let's assume that a prospective

defendant has a high net worth and that the danger of losing it in a

lawsuit exists. The assets can be protected by placing them in an

offshore trust before a suit is brought. As with any legal matter,

advanced planning is of vital importance. While few people ever

imagine they will be sued and lose their assets in a lawsuit, however, in

the current litigious society, advanced planning is necessary. An

offshore trust is one of many alternatives that exist to protect your

wealth.

For more information on successful Florida estate planning and asset

protection techniques, please contact the South Florida law firm of Wild

Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com

to schedule your free consultation. It’s a Wild world. Are you

protected?