Trust / Foundation + EU Based LLC

[singlelady90]

Hello,

One of my client is considering this schema.

Setup a Trust or Fondation (for example Panama) somewhere, move inside all stocks, assets and create a new LLC (which will be owned by the Trust).

1.- Where to register a cheap / safe trust?
2.- Do the owner of the trust need to report it to his national taxation office?
3.- It is dangerous to let people know you own a trust or you can even tell this so that anyone will forget the idea to take you to Court?

The aim is ONLY for Assets protections. Taxes will be paid in Europe where the Directors will also get salaries etc.


Thanks!

 

[hernanday]

Hello,

One of my client is considering this schema.

Setup a Trust or Fondation (for example Panama) somewhere, move inside all stocks, assets and create a new LLC (which will be owned by the Trust).

1.- Where to register a cheap / safe trust?
2.- Do the owner of the trust need to report it to his national taxation office?
3.- It is dangerous to let people know you own a trust or you can even tell this so that anyone will forget the idea to take you to Court?

The aim is ONLY for Assets protections. Taxes will be paid in Europe where the Directors will also get salaries etc.


Thanks!

1. This only works if the judge doesn't find out or else fraudulent conveyance will be invoke. While sure he can put it in the name of the Panama trust, the judge in EU will just ignore the structure and take the property.

2. Panama is about the cheapest trust/foundation place I seen. But I been told it is not good anymore, not sure of the details as to why.
3. If he has a self settled trust, the courts/tax authorities in any developed nation will disregard the trust for the most part, especially if he has reason to believe a lawsuit is coming or SHOULD.

4. Yes, it is very dangerous because judges frown upon people who "Game the system" and self settled trust are not generally accepted outside of offshore jurisidictions because its too easy to escape liability.

A foundation donation would be preferable that permits him some access while divorcing the ownership.

 

[singlelady90]

1. This only works if the judge doesn't find out or else fraudulent conveyance will be invoke. While sure he can put it in the name of the Panama trust, the judge in EU will just ignore the structure and take the property.

2. Panama is about the cheapest trust/foundation place I seen. But I been told it is not good anymore, not sure of the details as to why.
3. If he has a self settled trust, the courts/tax authorities in any developed nation will disregard the trust for the most part, especially if he has reason to believe a lawsuit is coming or SHOULD.

4. Yes, it is very dangerous because judges frown upon people who "Game the system" and self settled trust are not generally accepted outside of offshore jurisidictions because its too easy to escape liability.

A foundation donation would be preferable that permits him some access while divorcing the ownership.

Thanks for your answer.
To be honest he / his business are in good standing, he does not think a lawsuit is coming soon however giving the very competitive industry, he wants to make sure to start with the right setup.

Can you tell me how it will work a Foundation and how to make things in a proper way? The operative company will be in EU. Someone even suggested a Foundation in Liechtenstein which will cost 5-7K per year. Also is it dangerous to let people know he has this structure or at the end of the day no one cares as the foundation will be totally separated from him and this can be a good deterrent in front of those who will try to take him to Court?

 

[hernanday]

Thanks for your answer.
To be honest he / his business are in good standing, he does not think a lawsuit is coming soon however giving the very competitive industry, he wants to make sure to start with the right setup.

Can you tell me how it will work a Foundation and how to make things in a proper way? The operative company will be in EU. Someone even suggested a Foundation in Liechtenstein which will cost 5-7K per year. Also is it dangerous to let people know he has this structure or at the end of the day no one cares as the foundation will be totally separated from him and this can be a good deterrent in front of those who will try to take him to Court?

Sure, tell everyone, matter fact put it on the front of the business with the address in Liechtenstein of the headquarters.

Frankly, your client sounds too stupid, best to not give him something he can't use correctly.

 

[myshufflemix]

Frankly, your client sounds too stupid, best to not give him something he can't use correctly.

what a sentence - I like

 

[singlelady90]

Sure, tell everyone, matter fact put it on the front of the business with the address in Liechtenstein of the headquarters.

Frankly, your client sounds too stupid, best to not give him something he can't use correctly.

)))
The concern was to understand if a "proper structure" (which means 100% Legal and Legitim) can be used as deterrent

 

[hernanday]

)))
The concern was to understand if a "proper structure" (which means 100% Legal and Legitim) can be used as deterrent

Half the people who have failing structures is because they do not keep their mouth shut. No matter what structure you gave your client, I'm sure it will fail, he will brag to everyone about the structure and if he is ever sued, the judge will do whatever is necessary to defeat it.

For a client of this low IQ level, the only solution is for him/her to leave the country. I wasn't being insulting, just realistic.

The structure is not illegal, but if you get a court order to pay, the court order is from the judge, not the plaintiff, you are going to be dealing with a judge, who will have a vested interest in seeing his own order be fulfilled. If the person is clever, they may get out of it. Your client is not clever.

The judge will perform legal gymnastics to enforce his own order, we seen even in the Cook Islands where the structure stood up, the judges don't break the structure, they just break the person by throwing them in jail indefinitely for a contempt order until they pay up.

Such a client would have to leave the country. If their business is making millions, the lawsuit should be the get out of dodge signal.