High-net-worth individuals can safeguard millions by leveraging offshore asset protection strategies, a legal expert has revealed.
Gideon Alper, an asset protection attorney at Alper Law, shared with us: “Offshore trusts are one of the most powerful tools to protect assets from creditors and domestic judgments. They place assets beyond the reach of U.S. courts, offering unparalleled security for those facing legal risks.”
Offshore trusts, such as those established in jurisdictions like the Cook Islands or Nevis, allow individuals to transfer assets to a foreign trustee, shielding them from U.S. creditors.
However, Mr. Alper cautioned: “Setting up an offshore trust requires careful planning. You must choose the right jurisdiction, ensure compliance with U.S. laws, and work with experienced professionals to avoid costly mistakes. While proactive planning is better, offshore trusts can be set up even after a lawsuit is filed.”
Explaining the benefits of offshore trusts, Mr. Alper said: “For example, a person with $5 million in liquid assets could transfer them to a Cook Islands trust. If a creditor wins a U.S. judgment, they’d face significant hurdles pursuing those assets in the Cook Islands, which does not recognize foreign judgments.”
According to Mr. Alper, combining an offshore trust with a foreign LLC can enhance protection. “A client can transfer real estate or business interests to an LLC owned by the trust. This allows them to retain management control while the trust shields the assets.”
A consultation with a specialized attorney can provide tailored projections for individual circumstances.
However, ‘offshore trusts aren’t suitable for everyone’.
Mr. Alper noted: “These strategies are expensive, with setup costs ranging from $15,000 to $30,000 and annual fees of $3,500 to $5,000. They’re best for those with at least $1 million in transferable assets and significant legal exposure, like business owners or professionals.”
Mr. Alper added: “For people with more modest means, there are often less expensive domestic options to protect their assets.”