Offshore Broker has officially launched its innovative Total Protection Package, which combines an offshore trust, LLC, and bank account to provide clients with a complete asset protection structure. Designed for individuals seeking maximum flexibility and security for their assets, this package offers an all-encompassing solution to guard against potential creditors, maintain privacy, and facilitate efficient management of wealth.
The Total Protection Package aims to offer asset protection and flexibility in wealth management by utilizing a Cook Islands Trust, paired with a limited liability company and a corresponding offshore bank account. This structure is specifically tailored for individuals who want to protect their assets while maintaining a degree of control over them. The combination provides a robust legal framework that mitigates the risk of asset seizure while allowing the settlor to remain actively involved in managing the LLC’s assets.
Enhanced Control and Asset Protection: Trust + LLC + Bank Account Model
Offshore Broker’s Total Protection Package is designed to meet the needs of clients who want to safeguard their wealth while maintaining some level of control. Trusts are traditionally used to provide asset protection, but they often require that the settlor relinquish control of the assets to a trustee. In contrast, this package allows the settlor to act as the manager of the LLC, giving them the ability to control and manage assets held within the company while benefiting from the legal protections of the trust structure.
In this arrangement, the bank account is held in the name of the LLC, which is owned by the trust. The settlor, who acts as the manager of the LLC, retains the ability to manage the bank account, executing trades, transferring funds, and overseeing the daily financial standing of the account. This added layer of control, combined with the protection of the trust, ensures that the assets are shielded from creditors while still allowing flexibility in their management.
This feature addresses a common concern among high-net-worth individuals regarding loss of control when creating offshore trusts. Offshore Broker’s package solves this by granting settlors the freedom to manage their wealth without compromising on the legal protections that a trust provides.
Case Law: Lessons on Control and Asset Protection
Several key legal cases highlight the importance of balancing control and protection within trust structures.
In Rahman v Chase Bank (CI) Trust Co Ltd (1991), a Jersey court declared a trust invalid because the settlor retained too much control over the assets. The court found that the settlor had the power to distribute the assets to himself, treating the trust as a personal holding rather than a genuine trust. This case illustrates the importance of the settlor relinquishing certain controls to ensure the trust’s validity.
Similarly, in Mezhprom Bank v Pugachev (2017), the High Court of England and Wales invalidated several New Zealand trusts, ruling that the assets within those trusts remained the personal property of the settlor due to the extensive powers he retained. The court emphasized that retaining significant control over the trust assets undermined the integrity of the trust.
Finally, in Webb v Webb (2020), the Privy Council ruled that two Cook Islands domestic trusts were invalid because the settlor had reserved excessive powers over the trust. This ruling further reinforces the necessity of ensuring that control over trust assets is appropriately balanced to maintain the legal standing of the trust.
Each of these rulings demonstrate the need for careful structuring to maintain the legal integrity of asset protection trusts. Offshore Broker’s solution ensures that clients can manage their LLC’s assets while meeting the legal requirements to keep the trust structure valid and protected.
A key feature of our approach is the ability for the trustee (who is the member of the LLC) to step in and remove the manager of the LLC, who may also be the settlor of the trust. In cases where the settlor, as manager of the LLC, is under duress from a local court or other legal pressures, the trustee can exercise its power to remove the settlor as the manager and appoint a corporate manager located outside the jurisdiction. This mechanism protects the assets by ensuring the manager no longer has direct control over the LLC, safeguarding the trust from being seen as the personal property of the settlor.
Why Offshore Broker’s Total Protection Package Was Introduced
Offshore Broker’s Total Protection Package was created to address the growing demand for flexible and secure asset protection solutions. By combining three powerful components—an offshore trust, offshore LLC, and bank account—clients benefit from:
Offshore Trust: Structured in a jurisdiction with strong asset protection laws, such as the Cook Islands, the trust shields assets from legal claims, judgments, and creditors.
Offshore LLC: The settlor-manager model gives clients control over assets while leveraging the asset protection provided by the trust.
Offshore Bank Account: The account offers multi-currency options, efficient international transactions, and a range of tailored investment opportunities.
This all-in-one solution ensures a comprehensive, easy-to-manage offshore structure designed for maximum asset protection and operational flexibility.
About Offshore Broker
Offshore Broker is a leader in offshore asset protection and wealth management, offering tailored solutions to high-net-worth individuals, entrepreneurs, and investors worldwide. The Total Protection Package is the latest addition to its suite of products designed to provide robust legal and financial security in an increasingly complex global environment.