Offshore Planning : Florida Asset Protection

Posted on July 16, 2010 by Jonathan Alper

How Money Is Invested Within A Nevis LLC Account

Over the years I have recommended Nevis limited liability companies to many asset protection clients. Most people who have formed a Nevis LLC has asked about how and where his money will be invested within the LLC entity. I do not get involved in the transfer of assets to offshore LLCs or the financial management of LLCs assets, yet I have learned through experiences of many clients and discussions with their chosen LLC managers how assets are maintained and invested within a Nevis LLC. .

Asset management within a Nevis LLC is similar to discretionary financial accounts offered by most U.S. financial institution. A discretionary account is when you, the client, appoints a financial entity to invest your money on your behalf. The financial manager makes all decisions about what to buy and sell subject to your stated objectives. If you appoint a financial company as offshore manager of your Nevis LLC the management company and its employees do not actually manage the LLC assets. Instead, the LLC manager hires a financial institution outside the U.S. in a discretionary capacity. Offshore money management firms used by my own clients include BNP Parabas (France) and Clariden Leu bank and RBS Coutts (Swiss). Fees charged by the offshore financial managers are similar to fees charged in the U.S.

Tags: Offshore Planning, llc, nevis

Posted on July 8, 2010 by Jonathan Alper

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.