The Marvont Group: Taxation and Offshore Asset Protection Planning

An asset protection trust with a U.S. citizen or resident as the settlor is normally structured to become tax neutral. In particular, as a result of the settlement of an asset protection trust, no further income, estate, gift or excise tax should be due. Likewise, the trust shouldn’t be expected to save taxes. It should also be pointed out that a foreign trust, despite the almost complete confidentiality it offers, can’t be legally (or safety) utilized to hide income from the long arm of the United States Department of the Treasury.