Trusts and Estates > Plus > Practice Development > Offshore Asset Protection Trusts

Nov 1, 2010 12:00 PM

Offshore Asset Protection Trusts

Have the rumors of their death been greatly exaggerated?

By Alexander A. Bove, Jr.

The death of the offshore asset protection trust has, by some, been greatly exaggerated.1 In recent years, attacks on a few such trusts under extreme circumstances have resulted in the incarceration of the debtor-settlor (settlor). But these results have been solely because of the settlor's abuse of the trust arrangement rather than the arrangement itself. With proper timing and expert advice, offshore asset protection trusts can protect the settlor's assets without the risk of jail.

In some of the more recent cases, abuse of the trust arrangement led to the settlor spending time in jail for contempt of court. For example, the January 2010 case of Securities and Exchange Commission v. Jamie Solow2 involved Jamie Solow, the settlor, embarking on a scheme to move his assets beyond the reach of the courts and his creditors. After millions of dollars in claims were filed against him, Jamie transferred his assets to his wife and, in turn, to a Cook Islands trust. Jamie consequently became subject to a court order directing him to produce the transferred funds. When he failed to do so, he was held in contempt of court and incarcerated.

Sign in to
view the full article



Remember Me

* Forgot Username/Password?

* Magazine Subscribers Get Your Login

Not a subscriber?

  • Subscribe & Save

    Get immediate access to Trust & Estates online

  • Subscriber Benefits

    Learn more about Trust & Estates magazine, online article access and our free enewsletters.

Topics of Interest

Estate Tax Donor Advised Funds
GSTs Family Offices
Private Foundations Life Insurance
2010 Tax Act News Industry Trends Surveys

E-Newsletter Signup

Poll

Topics of Interest

Estate Tax Donor Advised Funds
GSTs Family Offices
Private Foundations Life Insurance
2010 Tax Act News Industry Trends Surveys

E-Newsletter Signup


T&E eNewsletters

Wealth Watch

Wealth Watch is a free e-newsletter delivered twice a month with expert advice on wealth management from Trusts & Estates.

Latest from Wealth Watch

View more from Wealth Watch.

Tech. Review

Technology Review is a free monthly e-newsletter from Trusts & Estates and nationally renowned expert Donald H. Kelley. It is geared to keeping estate planning lawyers current on the latest tech news they can use.

Latest from Tech. Review

View More from Technology Review.

Philanthropy Tax Guide

Each month, Conrad Teitell reports on and analyzes as important tax development governing charitable contributions, including how to maximize the benefits and avoid the pitfalls.

Latest from Conrad Teitell

View More from Conrad Teitell.

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

Press Releases

Browse Back Issues

What's new on
WealthManagement.com


Most Popular Stories

Press Releases

Advising the Wealthy: It's a Whole New Game

Charlie Ratner talks with estate-planning expert Lou Harrison, investment guru Michael Lewitt and retirement benefits specialist Mike Jones. Register for this timely podcast......

More Press Releases...

Bookstore / Library

Follow us on Twitter