The Defender Trust

The Defender Trust is most effective for those who want the protection afforded by a Foreign Asset Protection Trust (FAPT) but are reluctant to give up control to a foreign trustee and place assets in foreign institutions. The Hybrid technique provides the solution.

The Defender Trust is registered offshore, but from the perspective of the IRS, it is a domestic grantor Trust. 

If the “Duress” clause is activated, the Trust’s jurisdiction is moved offshore with all of the protections of a Foreign Asset Protection Trust. Private Placement Life Insurance (PPLI) tax sanitizes the structure.

The Settlor can serve as the Trustee and Beneficiary, allowing them to control all trust assets before the Duress Clause is triggered. This setup ensures that you maintain significant control over your wealth while still benefiting from the trust's protection.

The Defender Trust is managed by a Domestic Managing Trustee, an Offshore Custodial Trustee, and a Domestic Protector. This multi-layered approach ensures comprehensive oversight and management of the trust, enhancing its security and stability.

In the event of a crisis, the domestic trustee is removed by the Offshore Custodial Trustee, and the trust operates as an offshore trust. This transition provides greater protection from legal threats, creditors, and other financial risks.

By transferring assets into the Defender Trust and the Master LLC, your ownership interest is shielded or minimized. This reduces financial vulnerability and protects your assets from potential legal challenges and creditors.

The Defender Trust can purchase and own a Private Placement Life Insurance (PPLI) policy, which offers tax-deferred growth and other tax benefits. This enhances the overall tax efficiency of your wealth management strategy.

The Master LLC, owned by the Defender Trust, holds entities that manage real estate and the Settlor's business. The Settlor and their family can be paid to manage the Master LLC, ensuring business continuity and providing a steady income stream.

You have the ability to appoint the Protector and the U.S. Trustee, allowing you to customize the trust's protection mechanisms to suit your specific needs and preferences.

The Defender Trust employs strategies that have been approved by the legal system, ensuring that your asset protection plan is both effective and compliant with relevant laws and regulations.