Offshore Trusts are the Best Asset Protection Available

What is the Asset Protection Trust‎?

The information below provides a guide for potential offshore founders when deciding on the most appropriate jurisdiction. Described what trust in the Marshall Islands and what is its purpose. The advantages of a trust are considered and it is indicated why the creation of trust here is an effective means of protecting assets.

It should be noted that the founders need to clarify the distinction between offshore and offshore trusts: in an offshore trust, assets are stored in another country, and the trust is created according to the laws of an offshore jurisdiction.

What is trust in the Marshall Islands?

Trust in the Marshall Islands must have a trustee, a trustee, beneficiaries and a guarantor. The founder must be an authorized person during the creation of a trust, and the trustee must be of full age in his right mind, who in good faith disposes of the founder’s assets. The main obligation of the trustee is to fulfill the requirements contained in the declaration of trust in the interests of the beneficiaries. The guarantor monitors the trust’s activities and ensures that the trust declaration complies with it, and also ensures that the trust functions in a satisfactory manner. The created trust does not acquire the qualities of a legal entity but allows the founder to transfer its assets from personal property to the ownership of the trust. Many founders want to end the legal ownership of their assets in order to protect them and tax planning – which is why trusts are so often created offshore.

Why create an offshore trust in the Marshall Islands?

For a number of years, Marshall Islands has been known to offshore investors as a tax haven, with a zero tax rate. After independence in 1986, the Marshall Islands joined the UN (1991) and gradually became independent offshore jurisdiction. Trusts on the Marshall Islands are characterized by a high degree of confidentiality, which is stipulated by the Law on the Economic Corporations of the Marshall Islands. In addition, the Marshall Islands are not a party to various tax information exchange agreements. A high degree of confidentiality of the founders has been respected since the law on corporations is based on US corporate law and follows the English common law.

The Marshall Islands is a reliable financial center, strategically located so that it can interact with investors from all over the world and maintain close business relationships with them. There are stability and a well-balanced legal system, with the result that the Marshall Islands has a well-deserved reputation as a jurisdiction where you can effectively plan taxation and protect your assets.

Purpose of a Trust in the Marshall Islands

– Asset protection – usually trusts are used by rich people as a special instrunment to efficiently manage their property

– Planning of inheritance – the founders want to freely dispose of their condition, avoiding the right of heirs to an obligatory share in the hereditary mass

– Benefits for children

– Benefits for employees.

Advantages of offshore trusts in the Marshall Islands

– High degree of confidentiality

– Application of corporate laws, which increases the level of trust of offshore investors

– Low trust creation costs

– Minimum trust registration and reporting procedure

– Tax planning

– Property Management.

Creating an offshore fund in the Marshall Islands

What is a foundation in the Marshall Islands?

To create a foundation on the Marshall Islands, 4 basic elements must be observed. First, the founder of trust management is necessary, i.e. The person initiating the creation of a fund The beneficiaries are the second element of the fund. In addition, the fund needs a guarantor (with the same functions as in the trust). Finally, board members monitor and control the fund. the work of the foundation. Funds are usually created when jurisdictions do not fully recognize trusts. Foundations in the Marshall Islands are an excellent means of effectively managing assets and assets.

A distinctive feature of the fund is that it acquires the rights and obligations of a legal entity immediately after its creation, which allows the fund to own many companies, act as a plaintiff and defendant in court and enter into agreements with third parties.

The fact that the foundation in the Marshall Islands is a legal entity means that no individual can own it.

Types of funds in the Marshall Islands

– Public fund – created by families, groups, etc.

– Private fund – created by private individuals, usually they are represented by private investment funds.

– State Fund

– Mixed Fund – can be created by any of the above.

Foundation Assignment to the Marshall Islands

– Asset Protection

– Efficient property management

– Protection against claims of creditors

– Protection from an unstable political situation

– Tax planning

– Centralized corporate control

– Profit participation schemes for employees

– Pension schemes

– Charity groups

What assets can you keep offshore in the Marshall Islands?

– Investment portfolios

– Real Estate

– Intellectual property, including patents and copyrights

– Shares and securities of private and state companies

– Bank deposits

– Life insurance policies

Foundation Benefits in the Marshall Islands

– Are legal entities and can enter into agreements with third parties

– Tax haven

– Ensuring a high degree of privacy and security

– Formation and development of relations with the state and the public

– The strategic geographical position contributes to the development of international relations and relations with other countries around the world, with the result that the fund is located within the international financial center

– Fund requirements are met in the same way as is the case in the trust declarations.