How does an Asset Protection Trust operate?
The Trust protects your assets because the funds placed in the Trust account are unavailable to persons who sue and may win a judgment against you. They may also be unavailable to a court in the US to hold (freeze or encumber) while a lawsuit is pending but before there is any judgment rendered in the case. For example, say you have $500,000 in a local bank. Assume you are sued and are ordered to pay a judgment of $250,000. Since you have control over the $500,000 and the funds are available, you would have to pay the $250,000 judgment. Your money is not protected. Now, instead of keeping the funds in the local bank, you gift the $500,000 into a Trust account. The transferred funds may be invested in either US or offshore investments probably similar to the type you currently hold. These may be in US banks, or brokerage accounts, or may be in offshore accounts with major banks or brokerage firms. Either way, this money is much safer from a judgment, because you no longer own the $500,0
The Trust protects your assets because the funds placed in the Trust account are unavailable to persons who sue and may win a judgment against you. They are also unavailable to a court in the US to hold (freeze or encumber) while a lawsuit is pending but before there is any judgment rendered in the case. For example, say you have $500,000 in a local bank. Assume you are sued and are ordered to pay a judgment of $250,000. Since you have control over the $500,000 and the funds are available, you would have to pay the $250,000 judgment. Your money is not protected. Now, instead of keeping the funds in the local bank, you gift the $500,000 into an offshore Trust account. The transferred funds may be invested in either US or offshore investments probably similar to the type you currently hold. Either way, this money 100% safe from a judgment, because you no longer own the $500,000, the Trust owns it. Essentially, you are placing your money into a foreign trust that is out of reach of potent
The Trust protects your assets because the funds placed in the Trust account are unavailable to persons who sue and may win a judgment against you. They are also unavailable to a court in the US or any other country in the world to hold (freeze or encumber) while a lawsuit is pending but before there is any judgment rendered in the case. For example, say you have $500,000 in a local bank. Assume you are sued and are ordered to pay a judgment of $250,000. Since you have control over the $500,000 and the funds are available, you would have to pay the $250,000 judgment. Your money is not protected. Now, instead of keeping the funds in the local bank, you gift the $500,000 into British Capital Group Trust account. The transferred funds may be invested in either US or offshore investments probably similar to the type you currently hold. Your Offshore Trust; Welcome To Freedom Either way, this money 100% safe from a judgment, because you no longer own the $500,000, the British Capital Group
