Question 13.   In the alternative, can I obtain maximum asset protection (i.e., become totally bullet-proof) by creating an offshore asset protection trust?

Answer.   We also believe that it is highly doubtful that an individual could become totally bullet-proof through any type of elaborate structure, whether domestic or offshore. Individuals need to keep in mind that the judicial system, in general, tends to be opposed to any type of arrangement that would totally isolate all assets from the claims of a legitimate creditor.

A properly drafted and operated offshore APT structure tends to be a more viable arrangement due to less conflicting laws (e.g., U.S. laws), provided that such a structure is in conformity with previously rendered judicial decisions. In this regard, the Co-Trustees and the Protector should not be beneficiaries of the APT nor should they be family members, and, the structure's assets should consist primarily of "liquid" assets such as stocks, bonds, certificates of deposit, notes receivable, etc. If real estate is involved, then a separate entity (e.g., LLC) should be utilized for the ownership of such real estate.