Protecting Your Assets with a Foreign Grantor Trust

Benefit from Nevada Trust Laws Without U.S. Tax Liability

Foreign grantor trusts present a unique asset protection strategy for non-U.S. individuals. Unlike a typical domestic trust, foreign grantor trusts are not subject to U.S. tax laws while offering the same level of protection.

One of the few downsides to having wealth is that it puts a target on your back for other people and organizations who want to take what you have. In fact, governments around the world are confiscating wealth at an increasing rate for a variety of reasons.

Creating a foreign grantor trust allows you to create a barrier of protection between your assets and anyone trying to gain access to them. Many wealthy individuals set up a foreign asset trust because it offers greater asset protection than what is available to them in their home countries.

Similar to other types of trusts, foreign grantor trusts involve a grantor, trustee, and beneficiary. In most cases, foreign grantor trusts are also revocable trusts.

Why Set Up a Foreign Grantor Trust?

The primary reason someone establishes a foreign grantor trust is that their ownership of particular assets is a liability to them. Perhaps they have creditors coming after them, they have unwanted taxes on their property, or they are at risk of a lawsuit. Whatever the case may be, they want their assets protected.

In addition to protecting your assets right now, a foreign grantor trust also allows you to secure your assets for future generations and to seek the advice of your trustee on the best strategies for growing your assets while held in trust.

If you own large amounts of property, you will have full access and will continue to enjoy all the benefits of your property as you have before moving the property into the trust.

When Should I Create a Foreign Grantor Trust?

Ideally, you want to approach asset protection with a long-term vision. Your strategy should take into account your plans for retirement and how you wish to distribute your assets after your time has passed.

However, the best time to form any type of trust is sooner rather than later. The reason is that it is harder to protect yourself from creditors and legal attacks after any individuals or organizations take action against you. The more time that passes from when you originally create your trust and when legal proceedings against you take place, the more your odds of protecting your assets exponentially increase.

Considering the current geopolitical environment and the favorable trust laws available, now is a better time than ever to set up a foreign grantor trust through a Nevada Trust Company.

The Benefits of a Foreign Grantor Trust

A primary benefit of setting up a foreign grantor trust is the confidentiality it provides for your assets. The trustee is responsible for managing your assets properly, and part of their job is ensuring the grantor maintains privacy without being discovered.

Aside from celebrities, most wealthy individuals prefer not to attract extra attention to their assets and their families. Whether they live in an unstable country or they simply prefer privacy for personal reasons, confidentiality adds an extra layer of safety.

A foreign grantor trust protects your assets from liability, debt, and lawsuits. Even if a stubborn creditor aggressively pursued assets in a foreign grantor trust, they would enter into an expensive and lengthy legal battle in the trust’s jurisdiction where you would have a substantial advantage. As a result, your trust creates a powerful deterrent that will prevent the majority of creditors from even trying to pursue legal action.

Foreign grantor trusts also protect you from your own government. For example, a judge in your home country can not force a foreign trustee to release assets from your trust to a creditor.

Where to Establish a Foreign Grantor Trust

Nevada has the best trust laws in the United States and among the most favorable trust laws in the world, for that matter. Wealthy international families have found Nevada’s unique laws advantageous and ideal for asset protection, privacy, and wealth management.

If you are interested in setting up a foreign grantor trust or exploring other options for asset protection, please contact our team at Alliance Trust Company of Nevada today. We are more than happy to answer any questions and help you decide on the best asset protection strategy for your particular situation.

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