An asset protection trust is created with the aim of ensuring a high level of confidentiality in the most cost-effective manner. A suitable and highly personalized asset protection strategy will let you save money for tax purposes and ensure the most cost-effective succession. When assets are transferred to a trust, a settlor no longer has any rights over them. A trust, in turn, works in the best interests of the beneficiaries, who are appointed by the settlor. At any time, however, according to a trust deed, a trust may be terminated, and assets may be returned to the settlor.

Usually, an asset protection trust is created for the following main purposes:

• Discouragement of litigation
• Enhancement of confidentiality in owning assets and properties
• Hedging strategies
• Tax optimization strategies
• Ownership or business internationalization
• Heirship optimization.

Different techniques and jurisdictions are used to create an asset protection trust for an individual or company in different cases. A perfect strategy for one entity may not only be unsuccessful but may even be harmful or illegal for another strategy. Therefore, it is vital to take the many nuances of international legislation and modern business polices into consideration in order to ensure and realize an effective asset protection solution.

However, almost all asset protection strategies have one element in common. They are worked out with the aim of making it as difficult as possible for a creditor or the authorities to identify to whom certain assets belong and what the full estate in possession of a particular entity is. Correctly structured and implemented offshore trusts in addition to the above-mentioned advantages are at the same time an efficient method of tax optimization.