Offshore Managers And Trustees Are Refusing Appointments From People With Existing Or Imminent Judgments
Setting up an offshore trust or a limited liability company involves hiring a trustee or LLC manager in a foreign jurisdiction. The offshore entity works well only if the debtor owner/beneficiary irrevocably gives the offshore manager control over the LLC and investment of LLC assets. Many people who anticipate using an offshore entity as part of their asset protection plan are initially reluctant to turn over complete control to an offshore management company. These people have named themselves as manager initially, and they plan to resign and turn over control to an offshore manager only if and when a creditor has gotten a civil judgment as is actively trying to collect the judgment.
Delaying appointment of an offshore trustee/manager until the creditor is "at the door" is not going to work in most cases. An offshore manager told me recently that his company is refusing appointment by U.S. debtors against whom a judgment has been, is about to be, entered. The offshore company does not want an appointment that is going to involve themselves in collection litigation from the beginning. Although the offshore manager will loyally defend collection actions against long-term clients, they do not find it profitable to be used only as a crises solution. Additionally, offshore managers are using more sophisticated methods for their due diligence investigation of prospective customers and are requiring the customer to submit in advance social security numbers and tax returns to assist in the investigation.
If you plan to use offshore LLCs, offshore corporations, or offshore limited liability companies in an asset protection plan be prepared to choose and appoint an offshore manager/trustee from the beginning. If you are fearful of relinquishing management authority over your entity then you should stick with simpler domestic asset protection tools.
