A group trust is a trust settled (created) by four or more individuals (for this purpose, a married couple counts as one individual). This technique was developed by Donlevy-Rosen & Rosen, P.A. in 2004 in response to a common problem faced by clients: often a client expressed concern not only about his/her own financial well-being, but also about others participating with the client in a business venture or other common pursuit.
An entity trust is a trust settled (created) by an entity, such as a corporation, limited liability company, trust, or partnership. An entity trust might also be settled by an appropriate group of entities, such as a related or commonly owned group of corporations, limited liability companies, trusts, or partnerships.
In this issue we need to get a little bit technical: We will be discussing selected U.S. tax laws which affect the formation and operation of certain offshore entities.
With this issue we continue our periodic review of selected offshore jurisdictions. As indicated by the above subtitle, in this issue we will review the Commonwealth of the Bahamas (“the Bahamas”).
For years we have been writing that offshore asset protection trusts do not offer any income tax advantages for United States citizens or residents. We have been constantly concerned about unfavorable “fallout” and/or (typical) legislative overreaction when one or more of these schemes backfired
The use of offshore trusts in asset protection planning was briefly discussed in Volume I, Number 4. In this issue we will take a more detailed look at how and why offshore trusts are used in asset protection planning, the tax consequences of utilizing an offshore trust in your planning, and the circumstances under which the technique may not be used.