This service combines a domestic (i.e. U.S., U.K., etc.) LLC with a foreign asset protection family trust. It has proven to be one of the most effective strategies at protecting real estate holdings, homes, stocks, bonds, and other profit producing enterprises from domestic judgements. This strategy is tax neutral (i.e. has no tax benefit), but has excellent asset protection and estate planning benefits. The current owner, who desires to protect an asset from future claims, transfers this asset into the LLC. The current owner (who now becomes the former owner) then becomes the manager of the LLC with control and use of the asset. The foreign asset protection trust is a member of the LLC and holds 99% of the membership interests so that the membership interests are safe from creditor claims. The foreign asset protection trust is set up in a jurisdiction that does not recognise U.S., U.K. etc. judgements. As before Belize or Nevis are our top choices. The former owner's family members are the beneficiaries of the trust, which makes it ideal as an estate-planning tool.

Creditors of either the former owner and/or the LLC manager cannot take the actual asset but can only get a charging order on the 1% membership interest held by the client in the LLC. This means that the creditor will only be entitled to a 1% share of profits, if and when any profits are distributed. The creditor must pay taxes on the 1% share of the profits regardless of whether the creditor receives profits or not. This can be very frustrating and expensive to a creditor.

The Foreign Asset Protection Trust member adds other important jurisdictional asset protection barrier virtually impossible for U.S. or other creditors to overcome. The foreign asset protection trust can also hold assets alone without being combined to the LLC. These assets could be stocks or precious metals for instance. However, for all assets located in one's country of residence, such as vehicles and real estate where title registration is the norm, a domestic LLC provides a low profile way to title the assets without creating undue attention. It should be noted that since the Asset Protection Trust is not directly owning the assets, but merely is a partner in the LLC, owning an ownership interest thereof, there are no Trust reporting requirements.

As with our IBC, this Domestic LLC / Foreign Asset Protection Trust combination follows a similar principal of utilising the trust as a purely passive entity to own a majority of the ownership interests of the LLC. This strategy puts the trust into the background where it truly belongs so you are not forced to "advertise" to the world that you have your assets placed into a trust. Since all the trusts we set up contain an anti-duress provision, no court of law can compel the trustee of the offshore trust to relinquish it's ownership interest in the LLC and no judgment against the trust would of course be recognised by the jurisdiction in which the trust is domiciled.

Separate LLC / Trust combinations should be set up for each property. Likewise, business equipment and automobiles can also be placed into additional LLC / Trust combinations. Businesses, which are so often the target of liability proceedings, end up owning few, if any, assets. Nobody, not even the government, can take from you or your business what you or your business don't legally own.

BENEFITS: Following is a brief summary of the benefits explained above:

• A domestic LLC Combined with a Foreign Asset Protection Trust is one of the most effective strategies at protecting real estate holdings, homes, stocks, bonds, and other profit producing enterprises from domestic judgements.
• It offers significant estate planning benefits.

To set up a domestic LLC combined with a Foreign Asset Protection Trust contact us now at scib@hushmail.com.