The Marvont Group: A Short Review on Asset Protection Trust

<strong>The</strong> <strong>Marvont</strong> <strong>Group</strong>: A <strong>Short</strong> <strong>Review</strong>
on Asset Protection Trust
As your leading source of information regarding asset protection, the <strong>Marvont</strong> <strong>Group</strong>
simply defined asset protection trust as any trust used to safeguard assets from creditor
attack. Normally, an asset protection trust is set up in an offshore jurisdiction, even though
assets will usually remain in the United States under the indirect control of the settlor – or
the person establishing the trust.
<strong>The</strong>se trusts are normally structured so that: they are irrevocable for a term of years and
the settlor is not a current beneficiary; they are treated as domestic grantor trusts for tax
purposes, even if they are “foreign trusts”; and the undistributed assets of the trust are
returned to the settlor upon termination of the trust, given there’s no current possibility of
creditor attack, thus allowing the settlor to recover complete control over the previously
protected assets.
Furthermore, the <strong>Marvont</strong> <strong>Group</strong> described asset protection in several ways, such as it is:
an effective tool to resolve or prevent litigation; a method to keep the ownership of assets
completely confidential; an alternative to traditional prenuptial agreements; a hedge
against possible exchange controls; a tool to protect pension assets and give an insolvent
debtor a fresh start; an ideal approach to avoid forced heirship laws that are common in
Europe; and a way to internationalize investment and hedge against governmental
instability.
Previous reviews show that there are numerous techniques that can be used to protect
various types of assets. Most are suitable for every person and are based on common sense,
while others are suited to wealthy or soon-to-be-wealthy individuals. Asset protection
techniques vary on both the location and type of property.

What is common to all asset protection techniques is that they make it harder for a creditor
to either find or take the assets. With a properly constructed asset plan that might include
an asset protection trust and a family limited partnership, a person can legitimately put a
significant part of his assets from the reach of judgment creditors and still retain
substantial control over those protected assets.
A properly implemented asset protection approach minimizes the size of the target the
plaintiff’s attorney is aiming for. As soon as the plaintiff’s attorney is sure that any
judgment will be hard or perhaps not possible to collect, his determination fades because
he’s not likely to be paid for his work. For those who wonder what the main effect of a
carefully constructed plan, it is the elimination of the plaintiff’s economic incentive to
litigate.
Based on a review made by <strong>The</strong> <strong>Marvont</strong> <strong>Group</strong>, an asset protection trust with a citizen or
resident of the United States and soon to offer in Tokyo, Japan as the settlor is normally
structured to become tax neutral. In particular, due to the settlement of an asset protection
trust, no further income, estate, gift or excise tax should be due. <strong>The</strong> trust shouldn’t be also
expected to save taxes. It’s also wise to note that a foreign trust can’t be legally or safety
utilized to hide income from the long arm of the U.S. Department of the Treasury regardless
of the almost complete confidentiality it offers.
If you’re a U.S. citizen/resident and considering an asset protection trust, the <strong>Marvont</strong>
<strong>Group</strong> suggests that have it implemented by a genuine tax expert with extensive
experience. Remember that if you’re ever told that an asset protection trust, or any foreign
trust, could save you income taxes, then you’re getting a negative advice and perhaps being
asked to commit a crime as you go along.