Tax Optimisation

Asset Protection & tax optimisation

Offshore Asset Protection

The strongest Asset Protection you can establish is an offshore strategy involving an LLC and a Trust. What offshore asset protection does, is it removes your entire asset portfolio out of the host country’s legal system. You essentially put your assets into a legal system that has the strongest asset protection laws in the world.

With this type of asset protection plan, you are in 100% control of all your assets. When there is time of legal duress, the offshore Trustee can step in to protect you. The Trustee is not subject to your local court orders. So they can refuse to comply with demands to bring back the funds. A trust protector,who you designate to supervise the asset management, can oversee the trustee. Meanwhile, you can advise the trustee as to how you want the trust company to invest your assets.

Tax Optimisation

Offshore Asset Protection Plan Benefit

  1. The client can control day-to-day activities, client is Manager of the Offshore LLC
  2. When the Manager is subject to legal duress, the Trustee must remove the Manager for the period of the legal duress and take up active management of the LLC. When the Trustee is the Manager, the Trustee can accept advice from the independent legal advisers of the client (the grantor of the Trust)
  3. Outside courts do not have jurisdiction over offshore trustee, therefore do not have the authority to enforce seizure of trust assets
  4.  Client can win the fraudulent transfer argument because there is no transfer of assets. Only the change of LLC manager occurs which does not involve asset transfer.
  5.  If assets are transferred after legal issues arise, the statute of limitations on fraudulent transfer is 2-years. Moreover, a plaintiff must prove this in offshore jurisdiction’s courts beyond a reasonable doubt. This is a very high legal hurdle, especially when one can offer legitimate international investing and diversification reasons.
Tax Optimisation

Pandora Capital can assist both individuals in companies in setting up asset protection structures – we are aware that every single case is different depedning on several variables, so send us an email or request a call back for us to analyse your case in order to provide you with the most beneficial structure for asset protection.