Offshore Trust: on whom to write the property and how to protect assets?

Very often we hear from our clients who are in the process of buying property, the same questions: who to write down the property to, whether they should buy it in the name of the trust.

Offshore trust effectively protects assets

The questions are the same, but all the cases with which the clients come to us do not fall under the pattern. In most cases, our experience suggests the optimal solution and we recommend the best way: enter the name of the trust in the title. I would like to remind readers that trust in legal language means a tax planning tool for preserving and managing the property. And this tool effectively protects the interests of our customers.

Currently, all information on purchases and sales of real estate is public and it is easily accessible to anyone who has the ability to use a computer and the Internet. This means that each of your real estate purchases is recorded and, if desired, everyone who wishes to gather detailed information about you will know about it. Hide the details, alas, will not succeed, and everyone will know what you bought, from whom, for how much, as well as many other details. In fact, if a potential or real lender is looking for information about you and your assets, he does not need to make a lot of effort, it’s all available!

Trust in the case of buying a property in the name of a trust, and not in your name, has certain and obvious advantages:

– firstly, when buying a property in the name of a trustee, your name will not appear in public records. For example, your property will be called the name of the trust and will be shown as belonging to, for example, “The Dolphin Trust” or “ABC Family Trust.” In this way, you will be able to maintain complete confidentiality about the ownership of real estate. Lenders (real and potential), most likely, will not see this property as belonging to you. The agreement on the establishment of a trust is in itself confidential, and no one knows who is the legal successor and heir (heirs) of the trust, and in some cases, the owner. When you buy a property in the name of a trust, and then transfer it by power of attorney after the purchase, you have the opportunity to hide the identity of the testator;

– secondly, most of the lawsuits and liens that exist in relation to the heirs, will not affect the trust itself and, consequently, the purchase and sale of real estate. Another advantage of buying a property in the name of a trust, rather than one’s own, is that your heirs will be able to avoid the expensive and complicated process of bequeathing (the right to inherit) after you leave.

It should be noted that if you plan to take a mortgage (credit) for the purchase, then most lenders will allow you to purchase property in the name of the trust only if you have personal guarantees for the payment of the loan.

If the trust is made correctly, you will not lose any tax benefits from owning property. All tax returns, deductions and other benefits will continue to flow as your individual refund. Assuming proper preparation of the trust and in accordance with your intentions and wishes, you will not feel any differences in the management and use of the property.

It is worth noting that some co-operatives do not allow a trust to be an owner when buying a co-operative apartment, while others are completely against the property of this kind.

It is important to remember that in the case of buying real estate for investment purposes, such as rent, it makes sense to issue ownership documents through LLC (Limited Liability Company), which, in fact, belongs to the trust and provides an additional level of protection and immunity from your tenants in case of litigation lawsuits.

The time before the end of the sale and purchase transaction is the most ideal for resolving the issue of recording real estate in the name of a trustee, and not your own. Transfer to trust is also possible and, moreover, highly desirable in cases where you already have a property, even bought on credit.

Offshore specialize in matters of protecting assets. You will always be helped here to discuss your individual factors and circumstances to determine the best strategy for planning future assets and meeting your needs, goals, and intentions.

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