BY CONNOR STEENS
As 2020 bared its teeth, an exemplary year of both uncertainty and volatility was realized, so too was the importance of an effective wealth management strategy. With further unpredictability on the horizon in 2021, we welcome you to study the extensive benefits that a Southpac asset protection structure can offer you, your family, and your legacy.
An offshore trust will always hold a valuable space in any asset protection strategy. If you have ever considered making an offshore structure a part of yours, let 2021 be the year to do it. With a number of advantages to consider, let’s break down the basics behind why you may require an offshore structure.
Frivolous creditor claims struggle to break the protective structure of an offshore trust managed by an independent trustee, such as Southpac, who in turn acts and administers the assets in the interests of the beneficiaries. Assets held in a trust are protected from creditors by specific legislation in the trust’s jurisdiction of the Cook Islands or Nevis. In each of these jurisdictions, frivolous claims by creditors are discouraged hugely because of the numerous hoops that a claimant must jump through, as well as the already robust privacy rules.
In the age of information, privacy becomes a great concern for many leading into 2021. An offshore trust established in the Cook Islands or Nevis boasts privacy advantages that prohibit public access to your private information and require extensive cause to be shown to attain that information. Your financial privacy is observed through careful structuring of your estate and succession planning.
Estate and Succession Planning
Examples of estate planning advantages vary across jurisdictions, however, common advantages include privacy involving inheritance distributions as well as the ability to circumvent forced heirship obligations, ensuring that distributions are made solely according to the settlor’s wishes. A lesser-known advantage is the spendthrift clause, whereby a distribution to a beneficiary, that may be under duress, is avoided to prevent seizure by a claimant or creditor.
Access to the Global Market
Southpac became the first trustee company registered in the Cook Islands in 1982. With nearly 40 years in the business, we have the ability to offer a network of premium global services consisting of foreign bank accounts, investment advisors, and precious metal custodians, all of which can enable you to both protect and build upon your wealth.
A Cook Islands or Nevis LLC is an offshore company facilitated by Southpac that offers protection over business assets. A settlor may transfer membership interest of an LLC into an offshore trust, whereupon the LLC becomes an asset of the Trust. The settlor is sometimes appointed as the manager of the LLC and may administer the business of the LLC provided that they keep the trustee appraised of significant business decisions and asset movements.
Considering an offshore asset protection structure in your 2021 wealth planning journey is an incomparable method of future-proofing both your finances and your legacy. By employing a preventative plan of action with Southpac, you can be assured that your assets are protected in these times of global uncertainty.
If you are interested in establishing an offshore structure or simply wish to request more information please contact us today for an obligation-free discussion.