We all have things we’d like to protect, from our cars to homes to investment accounts. We use strategies and plans to safeguard them from as many risks as possible to protect them for our use and for our heirs. One way of protecting assets from loss, creditor claims, and civil judgments, involves transferring them to an offshore account.
Offshore Asset Protection Accounts.
Using an offshore account is a power tool you can use to protect your assets. In fact, it’s become an increasingly popular one also, with most states in the U.S. allowing their use.
Like all trusts, there’s a settlor who creates the trust, a trustee who manages the trust assets, and a at least one beneficiary. In Virginia, an Asset Protection Trust may be referred to as a Qualified Self-Settled Spendthrift Trust (QSSST). The difference is that the trust is set up in a jurisdiction other than the one in which you live. Often, countries with environments that protect investor’s privacy and where the trustee is not under the power of U.S. courts.
Transfers to a QSSST cannot be made to delay, hinder, or defraud creditors. In fact, QSSST deposits can be canceled if the settlor becomes insolvent as a result.
Virginia law contains other important requirements regarding the opening and maintenance of QSSST accounts. Talk to an attorney before opening one.
It’s Perfectly Legal … If Done Right.
The laws on offshore accounts vary from state to state. If you live in Virginia, it’s important that any trusts you create comply with Virginia law.
Avoid the Pitfalls of Using an Offshore Account.
The main thing to remember is that asset protection strategies must be set up before a claim is made or even imminent. Otherwise, your actions may be considered fraudulent. Always consult with an experienced lawyer before setting up asset protection.
At Dillon Law Group, PLC, the attorneys work with you to set up appropriate asset protection strategies. We can make asset protection part of your comprehensive estate plan. Please contact us at 757-962-4796 to set up an appointment or use the Contact Form on our website, https://www.dillonlawgrp.com/. Our offices are located in Virginia Beach and Newport News, but we serve clients in surrounding communities.