What are Offshore Trusts and Why Should I Have One?

offshore trusts

To understand what an offshore trust is, first you need to understand what an onshore trust is.

An onshore trust is basically an account. In this account, a settler places assets or property. Then the trustee holds onto this property for the beneficiaries of this trust. Onshore trusts can be heavily scrutinized and looked after; this is what makes an offshore trust so appealing.

An offshore trust refers to a trust that is located in a different place then where the settler resides. When assets or property is placed outside the locale of a person they easier for the settler to have it looked after. Offshore trusts have the distinct advantage of having different rules to follow. You want to be able to leave your family the things you want them to have and make sure they are doing what you want with them. Trusts are set up to do just that; respect your wishes.

If you have a specific amount of cash set aside for your grandchild’s college funds you may want to make sure they spend the money on college and not on something else. To do this, you would set up an offshore trust fund, naming them as beneficiaries at the time of their high school graduation. You would make sure the legal wording is iron clad so they could not pull a fast one on you. Trusts are all about protecting your assets and ensuring that your hard-earned resources accomplish the outcomes you desire.