Foreign Asset Protection Trusts

Book a Consultation

Last Updated: Mar 2, 2023

Read Time: 2 mins

A Foreign Asset Protection Trust (“FAPT”) is a trust structure established in a foreign country that allows you to protect your assets from creditor claims and lawsuits. A Foreign Asset Protection Trust is an irrevocable trust in which the beneficiary can be the same person that created the trust, and the trust’s assets are shielded by that individual’s creditors, including legal complaints, malpractice and negligence claims, divorcing spousal claims, and other legal/financial consequences.

The foreign jurisdiction will require a person seeking to go after the assets in a Foreign Asset Protection Trust within its jurisdiction to jump through several hoops to try to pursue enforcement against the Foreign Asset Protection Trust. While a creditor may be able to meet the preponderance of the evidence requirements in the United States to obtain a civil judgment — a foreign jurisdiction requires significantly more proof in order to attack the Foreign Asset Protection Trust.

Can You Avoid Tax with a Foreign Asset Protection Trust?

The short answer is, “No.” The purpose of a Foreign Asset Protection Trust is not to avoid income or estate tax. FAPTs are designed specifically to provide asset protection from creditor claims.

A US person is subject to tax on his or her worldwide income and entire worldwide estate. Transferring assets into a Foreign Asset Protection Trust is tax neutral for a US person.

What Countries Offer Foreign Asset Protection Trusts?

Cayman Islands
Cook Islands
Nevis
Belize
Isle of Man

Cook Islands is typically recognized as the premier Foreign Asset Protection Trust jurisdiction. The Cook Islands’ legal system is extremely favorable toward those defending themselves against creditor claims, including egal complaints, malpractice and negligence claims, divorcing spousal claims, and other legal/financial consequences.

The Asset Protection Trust statutes of the Cook Islands are among the most formidable asset protection laws in the world. In fact, Cook Islands is recognized as being the first jurisdiction in the world to established self-settled Asset Protection Trust laws..

Creditor claims and judgments originating from the United States and other countries will not be able to reach assets in a Cooks Island Asset Protection Trust.

The Stuart Green Law Approach

A Modern Approach to Family Wealth

Stuart Green Law combines modern South Dakota trust law with integrated estate planning, wealth management, and fiduciary services for families throughout the United States and internationally. The firm’s approach is built around selecting the strongest legal framework available, maintaining continuity of planning judgment, and bringing every part of the family’s wealth strategy into alignment with its long-term objectives.

South Dakota Law,
Wherever You Live

Families are not limited to the trust laws of their home state. Stuart Green Law integrates South Dakota’s sophisticated legal framework into estate plans for clients across the United States and around the world, allowing families to benefit from its privacy, flexibility, asset protection, and long-term trust advantages regardless of where they live.

Direct Advisory
Relationships

Stuart Green Law is intentionally structured as a boutique practice. Clients work directly with the attorney responsible for their planning, creating continuity of judgment and a deeper understanding of the family’s objectives as the plan evolves over time.

Planning That Works
as One System

Estate planning, tax strategy, wealth management, and fiduciary services are most effective when they operate together. Stuart Green Law integrates these disciplines into a cohesive framework that keeps the family’s wealth aligned with the grantor’s vision, goals, and long-term planning intent.

Client Testimonials

    
 
 
       Posted on Google  
   
   Angélique Pfab Green 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is incredibly knowledgeable and clearly operates at a very high level. His approach to estate planning and wealth strategy is thoughtful, modern, and well beyond the traditional. You can tell he genuinely cares about helping people protect what they’ve built. Truly impressive work and reputation.
  
 
      Posted on Google  
   
   Maria Cardenas Anderson 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had an excellent experience working with Stuart Green on my trust and will documents. From start to finish, he was incredibly responsive, patient, and thorough. He took the time to explain everything clearly, ensuring I fully understood each step of the process. Even after the trust was complete, he guided me on what still needed to be done — something I really appreciated. Stuart’s professionalism and kind demeanor made what could have been an overwhelming experience so much easier. I felt informed and supported every step of the way. I would highly recommend him to anyone looking for a knowledgeable and attentive probate lawyer. Thank you, Stuart!
  
 
      Posted on Google  
   
   katelyn rennie 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart is outstanding! We have been so impressed with his knowledge.
  
 
      Posted on Google  
   
   Chris Stinson 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is an exceptional estate attorney. He handled my father's living will and then his estate after his passing, as well as helping my mother finalize and complete her estate in conjunction with my father's death. Currently, he is handling the living will and estate planning for me and my wife and our family. I highly recommend him and his integrity of work.
  
 
      Posted on Google  
   
   Alejandra 
 
 
 
 Trustindex verifies that the original source of the review is Google. My experience with Stuart Green Law was a 10/10. They were professional and efficient, resolving my case quickly. I highly recommend them!
  
 
      Posted on Google  
   
   Joseph Marchetti 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great guy - honest businessman.  Has been very helpful for me in providing feedback and input from a law perspective on employment and legal agreements in my personal and professional life.  Would heartily recommend Stuart to others!
  
 
      Posted on Google  
   
   Will Desrochers 
 
 
 
 Trustindex verifies that the original source of the review is Google. I have worked with Mr. Green for awhile now and can't recommend him highly enough. He is professional and and timely with his responses to my questions. I really appreciate how he helps me understand the plan for my estate. I look forward to continuing to work with him.
  
 
      Posted on Google  
   
   Chuma 
 
 
 
 Trustindex verifies that the original source of the review is Google. I’ve learned a great deal from Stuart on the foundational aspects of estate planning, legacy planning and asset protection. Having had the privilege  to work alongside Stuart, I can also say that he is a top tier counselor and focused on aligning his client’s personal goals with their long term objectives and wishes.
  
 
      Posted on Google  
   
   Nick Delsignore 
 
 
 
 Trustindex verifies that the original source of the review is Google. Incredible person to know and be associated with. Stuart provides excellent services, that is undeniable. However you will be hard pressed to find another attorney with a truer moral compass.