One major concern in the business market today is the protection of the assets of the business owners. Asset protection is based on how confidential your assets are. If a person owns a business than its personal assets are also at risk due to the claims of other parties. Asset protection planning is a good technique to keep the owner safe in bad times.
Asset protection can be achieved through the use of offshore structures which involve offshore trust, offshore companies and offshore bank accounts. One way to protect the assets from the claims of the creditors is the use of foreign trust which will help the owner of the asset to relocate the titles of its assets with a trust that is located outside its home country.
The benefit of a foreign trust over the trustee services in home country is that in a normal trust freezing of the accounts of the asset owners is possible by some authoritative person but foreign trust is safer for the owner in this regard. Foreign trust acts as an offshore trust where the trust follows the rules and regulations of the region of the trust.
Most of the benefits associated with the foreign trust are due to the legal environment of the trust in foreign country. Another important offshore structure used for the protection of the assets is offshore companies. Offshore companies can be used to hide the identities of the directors or the owners of the offshore company and in this way the asset is remained safe from the claims associated with the owner as linking of the asset with the owner would not be possible. The third offshore structure mentioned earlier is the opening of an offshore bank account which provides secrecy services to the client and hence the information regarding their accounts is not leaked.
This provides protection from the claims of the creditors. Asset protection strategy should be opted carefully. You can decide whether to choose a strategy in the home country or offshore the strategy. The corporate services can be hired to protect your assets against the claims. But asset protection should not lead to the frauds.
Asset protection is different from frauds. If the property is collateral for loan of creditors, it cannot be protected from the claims of the creditors as it involves the right of the creditor of sell your property to recover the amount of loan.