Asset Protection Structures - A Quick Overview

By David J Drummond

Asset ProtectionI spend a majority of my day conversing with individuals from around the world looking to protect themselves, their families and their assets. And, as you can imagine, each and every invidividual's personal situation is different. There is not one simple "pill" that can be utilized by everyone.

The "tools" that are used are asset protection structures, second residencies, international bank accounts and alternative investments. I wanted to give you a quick overview of the types of asset protection structures and how they are typically utilized.

You can also download our Asset Protection Guide for more detailed information on these structures.

Limited Liability Company (LLC)

Limited Liability Companies are the structure of choice for passive income generating investments such as real estate, dividends and brokerage accounts. They work just like LLCs where the business gain or loss flows to your personal income tax return. 

International Business Company (IBC)

We utlize International Business Companies, which work much like U.S. C corporations in the United States, for ordinary income generating businesses. If you are running your own business and generating revenues, this would be the structure of choice. 

International Trust

There are a variety of trusts that one may utilize, however, they are most beneficial to protect assets and transfer wealth to the next generation. They can be setup by an individual or a company and they can also own an LLC or an IBC. How you use them is dependent on your specific goals.

International Foundation

The civil law substitute for a common law trust is a foundation. They are great vehicles for asset protection and can be used for non-profit operations. There are a variety of trusts that you may utilize, however, they are most beneficial to protect assets.

In Summary

There are a variety of structures available to help protect assets, maintain privacy, mitigate taxes and defer income. They can be used as stand alone entities or in combined to meet specific goals.

Download The Asset Protection Guide where you will find more information on each of these structures as well as other services that Georgetown Trust provides to our clients.


Topics: Asset Protection, International Trusts, International Business Companies, Foundations