When inconsistent with a client's previous financial practices, the mere creation of a foreign asset protection trust may be considered evidence of fraudulent intent.
Foreign asset protection trusts. These trusts are appropriate for sophisticated clients who want to gain maximum protection and are willing to pay significant fees to do so.
As indicated, the objective to the foreign asset protection trust
is generally to protect the grantor's assets over a reasonable period of time from potential litigation, such as malpractice suits, etc., that could cause a significant loss to the typical grantor.
(16) Furthermore, family limited partnerships, spendthrift trust planning, and domestic and foreign asset protection trusts
should be considered to develop a comprehensive asset protection plan.
Such trusts may be referred to as "OAPTs" (Offshore Asset Protection Trusts), "FAPTs" (Foreign Asset Protection Trusts
), "IOEPTs" (International Offshore Estate Planning Trusts), and "global protection trusts." See Hompesch et al., supra note 6, at 9; Marty-Nelson, Asset Protection Trusts, supra note 37, at 12.