Foreign Asset Protection Trusts
A Foreign Asset Protection Trust (FAPT) is structured similarly to a DAPT, however, it is created under the laws of a non-domestic jurisdiction. The Trustee will be located in the foreign jurisdiction. The attractiveness of using a FAPT for asset protection purposes is that a foreign jurisdiction that recognizes self-settled trusts would not honor a judgment from a United States court.
In addition, a client with a FAPT is an extremely unattractive target for a lawsuit because a creditor would need to litigate its claim against the foreign Trustee and pursue a collection action in that foreign nation. The creditor would need an attorney that practices in such foreign jurisdiction and the litigation cost could be prohibitive in many instances.
Asset Protection videos
- How can a limited liability company provide me with asset protection?
- How can I protect my interest in real property?
- I carry malpractice and/or liability insurance. Is that enough to protect my assets?
- Is asset protection only for the wealthy?
- Is it possible that I may need more than one LLC?
- Should I use a trust to protect my assets?
- What are the tax implications of a business registered as a subchapter S corporation versus an LLC?
- What is a domestic asset protection trust?
- What is tenants by the entirety?
- When should I start asset protection planning?
- Would a living trust provide protection for my assets if I were sued?
- Does a small business (subchapter S) corporation give me the same protection as an LLC?
- Can you describe how an asset protection trust works?
- Can I prevent a daughter in law or son in law from benefitting from my child’s inheritance if they get a divorce?