FOREIGN TRUSTS

Trusts serve many purposes in many different strategies. Although asset protection is a very common use for foreign trusts, it is but a single use. The asset protection trust described above is a "Tax Neutral" trust. There is no advantage or disadvantage to the grantor from a U.S. or Canadian federal income tax perspective. A North American client who utilizes an asset protection trust administered by Prudential Trustees can rest assured that the strategy will afford them the strongest asset and wealth preservation available in the world. On the other hand, it will not reduce their tax obligation by a penny.

A trust can hold ownership of a foreign company (IBC). Such a company can engage in any number of business enterprises. If the North American citizen is not the "Grantor" or "Settlor" of the trust and is neither the Trustee nor Beneficiary, then the business of the IBC will not be imputed to him or her.

A foreign trust can open, hold and manage brokerage accounts in any country in the world, including the U.S. If the trust has been carefully created and funded, this will be a truly foreign account and the income earned on the securities investments will be free of any U.S. taxation on the capital gains.

A foreign trust can own the stock of U.S. or Canadian corporations, real property, mortgages, partnership interests, and LLC interests. It can play a valuable role in any number of formal financial or business strategies. Prudential Trustees, Ltd. acts as Trustee to trusts that formed for a myriad of purposes. They work with experienced attorneys, accountants and other offshore professionals to ensure that the correct strategy is in place.