Ken Laino of Asset Protection Law Journal has a recent blog post on closing tax loopholes for offshore accounts. Early in my asset protection career I had a client who owned property in the U.S. Virgin Islands and was contemplating setting up an offshore trust there.  I spoke to several local attorneys as part of our research and due diligence.  My conversation with one such attorney was pretty short, as her major selling point for using the British Virgin Islands as a locale was that the income from the trust wouldn't be reported to U.S. taxing authorities.  There are plenty of advantages to using an offshore trust for asset protection purposes when the circumstances warrant, but attempting to evade taxes isn't one of them, and there really isn't much in the way of legitimate tax avoidance by going offshore.  There are also domestic structures that can provide better tax advantages than an offshore trust in the right circumstances.

Asset Protection isn't about not getting caught doing something wrong, it's about minimizing what someone can take from you when an unscrupulous creditor tries, or contemplates trying, to get more from you than he deserves.
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