require you to contact the other shareholders and, many times,
this may present a privacy issue, as you may not want everyone
to know that you are planning to move to the United States.
In addition, you may have limitations on the transferability of
your ownership interests under the laws of your particular home
jurisdiction, especially transfers to an offshore trust.
In some cases, your home jurisdiction may even try to impose
an exit tax on transfers to an offshore trust. That is why your
corporate due diligence is of critical importance.
NOT KNOWING YOUR OFFSHORE
TRUSTEE
Oftentimes, little consideration is given to the important question
of who becomes the trustee of the offshore trust. In many cases,
a professional corporate trustee will have to be appointed, and
this often raises concerns.
You will probably be thinking, “Who are these people?” “Can I truly
trust them with all of my assets?” “What if they take all that I have
worked for all my life and disappear into the sunset?”
Do your own due diligence on the trust company, their reputation
and operations. Do not take anyone’s recommendation at face
value. The decision of who to appoint as your offshore trustee is
as important as choosing which bank to use.
The critical difference is that if you don’t like your bank or banker,
for any reason, you can simply close the account and take your
hard-earned money elsewhere. It’s not so easy with the trustee of
your irrevocable offshore trust.
For this reason, you need to be very clear on what power(s) you
have under the terms of offshore trust to terminate the existing
trustee and appoint another trustee.
Equally important is the need to understand which fees will be
charged, not only for accepting the trust (the acceptance fee)
and the annual ongoing fees (annual fees), but also the fees
involved in case you decide to terminate the trustee relationship
(the termination fee).
There are many qualified trust companies out there. Make
sure you find the one that best fits your needs and it is
actually experienced and familiar with the appropriate type
of pre-immigration offshore trust structures and related U.S.
compliance requirements.
NOT CHOOSING THE PROPER
JURISDICTION
Not all offshore jurisdictions are the same. Some offshore
jurisdictions are not suitable for this special type of pre-
immigration offshore trusts. Some may not have the
infrastructure you have come to expect in these days of
complete comfort and connectivity.
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