Keeping Property in the U.S.

Most of our clients want the option to transfer funds into an overseas account—but are reluctant to do so immediately. The solution is to use a domestic entity such as a Family Limited Partnership or Limited Liability Company to maintain property in the United States.

Under this arrangement, husband and wife are the general partners or members with complete management and control over the company. Only the membership or partnership interests are transferred to the Offshore Trust. The strategy is similar to Privacy Trust–Plan #2—but the trust uses a foreign rather than a domestic trust company.

The trustee has no right to interfere in the management of the assets of the partnership or the LLC. Control is maintained by husband and wife as general partners or managers. Even though the trust holds the ownership interests, all of the assets remain physically located in the United States under the direct control and supervision of husband and wife.

This arrangement can provide a high level of asset protection benefits. Property is legally insulated within the FLP or LLC. The Offshore Trust owns and protects the interests in those entities. Liquid assets can be moved into the overseas trust account for additional protection or investment purposes.