However, the typical offshore asset protection trust
is a grantor trust and, as clarified by Treas.
Ausness, The Offshore Asset Protection Trust: A Prudential Financial Planning Device or the Last Refuge of a Scoundrel?, 45 DUQ.
(7) In 1997, seeing the opportunity to compete against offshore asset protection trusts by developing a competitive environment, Alaska became the first state to recognize self-settled discretionary spendthrift trusts (also known as self-settled asset protection trusts) (8) as a way to shield a settlor's assets from creditors.
The use of offshore asset protection trusts to "keep chips out of the pot" has exploded in the last decade.
The use of offshore asset protection trusts is no longer limited to the ultra-rich.
Costs of setting up an offshore asset protection trust vary considerably, depending upon the jurisdiction and the complexity of the trust; they typically vary from $3,000 to $10,000.
In order to protect privacy, assets, and growth potential, both individuals and businesses need a financial plan that may include an offshore asset protection trust.
And it's not all offshore asset protection trusts
FLICK & JONATHAN GOPMAN, FLORIDA BAR, ASSET PROTECTION IN FLORIDA, OFFSHORE ASSET PROTECTION TRUSTS
, ASPR FL-CLE 10-1 (2013).
138 (1997) (discussing the shortcomings of domestic asset protection devices and the benefits of offshore asset protection trusts
for serious investors).
679 generally requires that offshore asset protection trusts
be structured as grantor trusts for income tax purposes, an Alaskan trust can be drafted as either a grantor or a nongrantor trust.
(37.) See Elena Marry-Nelson, Offshore Asset Protection Trusts
: Having Your Cake and Eating It Too, 47 RUTGERS L.