Why Create An Irrevocable Trust?


The majority of trusts are establish to prevent probate right after someone’s passing. A grantor can amend a revocable trust time throughout your life. Its terms end up being irreversible just after the grantor’s death.

Exactly why might anybody create a trust fund they cannot amend? Normally, rich people create these types of trust funds so as to protect their possessions from taxes.

An irreversible trust is one that cannot be altered or ended by the individual who developed it. The grantor likewise hands over control over the trust possessions, often by formulating the trust as an offshore structure.

Trusts that begin as irreversible aren’t typical other than among the rich. Attorneys have actually created various sorts of irreversible trusts to serve their customers.

Some individuals worry regarding government property taxation, when it comes to what’s called an irreversible life insurance policy trust. The trust owns a life insurance coverage policy on the life of the grantor.

Avoiding taxes is the objective of lots of irreversible trusts, however not all of them. A number of irreversible trusts are created to protect possessions from lenders, hand down a company while lessening taxation, or ensure an imprudent kid from going through all inherited money. A few dynasty trust funds are created to endure for many generations, enhancing and maintaining household wealth without permitting the grantor’s descendants to get access to the assets.

The grantor, in the deed that establishes the trust fund, lays out the conditions under which trust fund possessions will be handled, and invested. A grantor which has management access to the trust fund possessions, may be thought about as the proprietor of those possessions.

In case the trust fund points you out as a successor fiduciary, after the grantor’s passing you take control over the trust fund possessions, and you should follow the grantor’s directions as laid out in the trust fund agreement. The trust fund is not anymore revocable, and therefore its conditions can’t be altered.

A basic amendable living trust fund, can enable the handing over of assets to the next generation, without any court of probate procedures. At any point in time before that happens, the grantor can amend the trust document. But once finalized, no amendments can be made, which provides for significant protection of trust assets, in comparison to a revocable trust that gives you far less overall protection..

Offshore Asset Protection: Most People Call It Hidden Money Or Tax Evasion


Bobby Casey is the Managing Director of a company called Global Wealth Protection, with Adam Wolf responsible as Director of Operations of the company, and specialized in advising entrepreneurs and millionaires on how to hide their assets and a lot of money. That’s his business, which incidentally is a profitable business in every way, and they reach customers around the world.

The business, as well as protection of offshore assets, according to these entrepreneurs is totally legal. Another question would be whether this practice is moral. The company does not want people evading taxes, but is probably often requested. In an interview Bobby Casey categorized Americans into two classes of people: People with money and people who want to take their money.

Among those who want to take money from millionaires, are people who open baseless litigation against companies and entrepreneurs. Bobby Casey says that if you have a good lawyer without scruples, anyone can open a lawsuit against a company or entrepreneur.

He mentions an example: If you are an owner of a building, and are concerned that a tenant might slip and fall and then sue you, Bobby can help, by placing the building in a legal entity or a trust, and that way protect that asset. That adds a layer of protection, in case a tries to sue you. You must ask for a court order to obtain the trust document. That is the second layer of protection. The company could be in Delaware, and it could be difficult to find the actual owners.

Similarly, you can hide money by creating a shell company in Nevis, with a bank account in Latvia. So if a lawyer wants to challenge you, he must first fly to Nevis, and in an unlikely event he will find what he’s looking for, and then should travel to Latvia.

One of the most requested services, as says Bobby Casey is protection against fortune hunters. Because if you’re a millionaire 89 years and and marries a 22 years old girl, there’s a real risk involved.

That is when we enter the moral debate. Many people openly justify claims against large corporations or small businesses who have committed irregularities.

Casey defends entrepreneurs who’ve worked so hard for years, without anyone to help them pay their debts when they can not do it.

Casey says he has asked Democrats and Republicans, Anarchists and Conservatives, Left, Right and Center. Everyone agrees that if the tax was voluntary, no one would pay, and the reason people pay is because they could go to jail. That’s what he calls extortion and theft by the government.

This is the mindset and thinking of Bobby Casey, which assumes that many will disagree.

Bobby Casey, does not help with hiding money but protect assets. One thing is clear, is that they have managed to create a VIP business advice service on finance issues for very a select customer type. Learn more about offshore asset protection here: http://www.assetprotectionpackage.com/what-is-a-revocable-trust-advanced-offshore-asset-protection/

The Panama Foundation – Part 2


Here’s the second part of the series. When setting up a foundation you also need to consider if you need a foundation or not, especially if it’s done for your family, and therefore there are certain family trust benefits you need to consider, before choosing what you will do.

Letter of Wishes

This is a very simple letter written by the Protector, which determines exactly how assets will be handled or distributed from the Private Interest Foundation in case of certain events, which may be the death or incapacity of the Protector. The letter of wishes must also establish, if the Foundation will continue to exist and whether a new Protector will be appointed, or if the Foundation should be dissolved after the death of the Protector.

There is no specific format in which the letter of wishes should be written, and it may be written or changed at any time by the Protector, after the registration of the Foundation in the Public Registry.

The letter of wishes may be maintained privately or publicly registered. Generally, most people prefer to keep the letter confidential, in order to maintain the anonymity of the Protector and the Beneficiaries.

Statutes of the Foundation

The Private Interest Foundation does not require any Statutes, as the Letter of Wishes is legally valid. However, if you want to have a format with a greater degree of formality as a will, a Panamanian lawyer can assist in the writing it. That instrument is then signed, and called Statutes of the Foundation. These Statutes fulfill exactly the same function as the Letter of Wishes, how the assets of the Foundation before an unforeseen event such as the death or incapacity of the Protector will be managed. Statutes should also indicate, if the Foundation will continue to exist, in case a new Protector is appointed, or if the Foundation should be dissolved after the death of the Protector.

In this case, there is a format that will be used for the preparation and drafting of the Statutes of the Foundation, however, they may be written or modified at any time by desire of the Protector, after the registration of the Foundation. The Statutes may be kept privately or publicly registered. Generally, most people prefer to keep everything confidential, in order to maintain the anonymity of the Protector and the Beneficiaries.

The Panama Foundation – Part 1


A Private Interest Foundation must have at least:

  • 1 Founder
  • 1 Foundation Council Member
  • 1 Protector
  • 1 Beneficiary

Except for the asset protection features of a foundation, I’ll explain the role of each party.

It is the person or legal entity that establishes the Foundation in the Public Registry of Panama. Generally, a law firm is the founder of each Foundation that is established in Panama, since they are going to take care of the registration. The founder, has authority and control over the Foundation, and will only be recognized as the figure who introduced the original document due registration with the Public Registry of Panama.

The purpose of the Council of the Foundation in Panama resembles that of a board of directors in a corporation. Each of the members of the Board shall be registered in the Public Registry Office with their names, addresses and identification as a member of the Board of the Foundation. Generally, a law firm provides a council “nominee” for positions on the Board, thus providing a greater degree of privacy and confidentiality. When a Council member is appoint as a “nominee”, you are provided with a resignation letter from each of the Council member “nominees”, duly signed and undated. That way you can replace the Council at any moment. The Council “nominee” has no control over the Foundation or any of its assets, but is a requirement of registration with the Public Registry.

The Protector is the person who is given full control of the Foundation and all the assets it owns. The Protector is appointed by the Board of the Foundation at the time of its creation in the Public Registry, however, the Protector may remove members of the Council when desired without the consent of anyone else. The Protector may be appointed through a Private Protectorate document signed by the Council; therefore, the Protector can maintain this position without public knowledge.

Generally, a law firm usually appoints the client as Protector of the Foundation through a Private Protectorate Notarial document, so that the client maintains full control over the foundation, which is at the same time private and anonymous. Once the Protector is appointed, he can be removed when desired.

Unlike companies issuing stock certificates to ensure ownership of the partners or owners, Private Interest Foundations in Panama don’t have owners but beneficiaries. Beneficiaries are appointed by the Protector of the Foundation through a Letter of Wishes, written privately or by a more sophisticated form called Statutes of the Foundation, which shall be drawn up with the assistance of a Panamanian lawyer. Either way, the privacy and confidentiality of beneficiaries will be ensured through the Statutes of the Foundation.

Also, Panama Foundations allow the possibility of appointing the Protector as the sole beneficiary until his death, at which time the Foundation will continue to operate in accordance with the interests of other beneficiaries.


Trust Funds And How They Work


A trust is defined as a relationship in which one party, known as the settlor, gives on the other hand, a trustee, the right to manage property for the benefit of a third party, called beneficiary or beneficiaries.

The trust is a written instrument, or a contractual agreement, which outlines the details of how assets will be managed, the name or names of the beneficiaries and obviously the assets owned by the trust.

In some cases this agreement allows a settlor to pay too much taxes, and instead allow all wealth to be passed on to future generations.

This is done either during his lifetime (a living trust) or after death (testamentary trust). Income and assets are transferred to a trustee who is able to preserve and manage everything in a tax free jurisdiction, which includes countries such as Switzerland, the Cayman Islands, Antigua, Barbuda, Belize, Panama, Liechtenstein and the British Virgin Islands.

Confidence in asset protection is an important tool in financial planning for anyone who has assets and do not want to lose them. These trusts are common among entrepreneurs, developers, professionals, doctors and businessmen.

A trust provides total security, in an increasingly uncertain world, threatened by abusive lawsuits and government regulation, makes his a much more common situation.

The main objective of offshore trusts is to protect the assets of the settlor against economic ruin that can occur in any number of situations, including what happens to assets after your death, marital or family breakdown, poor management of business enterprises, political risk, a spendthrift situation with family members.

The fund has no legal owners. Even though it has beneficiaries, they can’t be sued and then forced to hand over any property.

The settlor must give the trustee the assurance that he or she will have full responsibility of proper management, and to distribute assets according to the wishes of the settlor.

If you want to know more about discretionary trusts, click here: http://www.assetprotectionpackage.com/what-is-a-discretionary-trust-advantages-and-disadvantages/

Bahamas Trust Fund


The creation of a trust can be an important part of an estate planning strategy for wealth preservation. If you take a look at your financial situation, you may discover that the security of your money is at risk. If you want to be sure it’s all well taken care of, until everything is transferred to your loved ones and your children after your death, a trust is a great vehicle. However, a trust can do much more than that for you… especially if it is part of a strategy of asset protection. You might also have asked yourself the question what is a grantor trust? At some point we’ll answer that as well. Or you can click on the link to learn more about it right away.

Offshore Trusts

An offshore trust is similar to a foundation in many ways. Having a settlor in charge of everything, including the transfer of assets, as well management of funds and property. Of course we also have beneficiaries who receive benefits from the trust on the basis of the conditions set out in the trust.

Offshore Trusts Are Modified To Accommodate Tax Havens

Many tax havens and offshore jurisdictions have changed their laws to better adapt to protection of assets, which are entrusted to be taken care of by the trust fund.
Switzerland, Liechtenstein and other tax havens went so far as to bring the concept of a trust from English common law.

The Bahamas Trust Fund

In the Bahamas trust is a private agreement between the parties involved, and as such registration with the government is necessary, as long as the trust does not own real estate in Bahamas. The law allows the creation of a trust for asset protection purposes, a testamentary trust (which comes into effect after the death of the settlor), or charitable trusts.

The law on trusts in the Bahamas is based on English law. This was first established in the Trustee Act of 1893, and subsequently amended and updated by a number of statutes. The most important of these are:

The Trustee (Election Administration Act) of 1989: This law aims to eliminate issues such as community property and forced heirship. It addresses the areas of who’s in charge of trust management, and allows a settlor to declare that Bahamas law will be governing the trust.

Fraudulent Dispositions Act of 1991: This law provides additional protection for assets protected by a trust. Any disposition of property made to defraud can be overridden by people who want to protect their assets from future claims.

The cost of creating a trust depends on the document and its requirements and provisions. It is best for those who wants a trust to acquire the services of a lawyer in Bahamas, in order to avoid a court to rule the document as invalid.