Impenetrable as offshore trusts may be, their owners still are subject to U.S. law.
Less admirably, he was a frantic user of shell companies, offshore trusts and other tax-dodging paraphernalia.
With Lerma's knowledge, Perusquia set up offshore trusts through PaineWebber's Channel Islands subsidiary, with Perusquia in charge.
But since the money was held in a maze of Swiss bank accounts and offshore trusts, PaineWebber won't admit responsibility.
The concept of the Protector was largely unknown in the U.S. and nearly always confined to offshore trusts thought the 1990s.
FORBES: Trust Protectors -- What They Are And Why Probably Every Trust Should Have One
But they remain available to families that had the foresight to set up offshore trusts four decades ago, as the Pritzkers did.
To consultant Lambert, the roly-poly mastermind of many offshore trusts, there's nothing wrong with shielding clients who have suffered financial reversals from creditors.
But as the drafting of offshore trusts evolved, the Protectors were sometimes given additional powers, such as to appoint the successor Trustee if one was fired.
FORBES: Trust Protectors -- What They Are And Why Probably Every Trust Should Have One
But what is jarring nerves is that the Treasury also appears to be cracking down on the offshore trusts where non-doms hold much of their wealth.
In accepting the money, with the exception of certain intertrust loans, the IRS agreed not to seek any further taxes then or in the future from the family's oldest offshore trusts.
For its lead, the Sunday Times says some of Britain's best known charities are being used by offshore trusts to shelter hundreds of millions of pounds from the tax authorities.
What was going on in those family offshore trusts?
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This is another way of saying that offshore trusts are good for offshore assets, but those who hope to protect purely domestic assets by conveying their title into an offshore trust quite probably accomplishes nothing.
Offshore trusts were increasingly drafted with provisions that gave the Protector broad discretion to terminate the existing Trustee, after which reference was to be made back to the original trust document to appoint the successor Trustee.
FORBES: Trust Protectors -- What They Are And Why Probably Every Trust Should Have One
Then, determined to get in on the booming trust business, the states of Alaska, Delaware and Nevada all adopted legislation that created advantages that were (they argued, and have argued since) similar to those found in offshore trusts.
FORBES: Trust Protectors -- What They Are And Why Probably Every Trust Should Have One
Suffice it to say when these states enacted trust statutes that were similar to the offshore statutes, some of those attorneys who had been drafting offshore trusts now started drafting domestic trusts for the same purposes, and thus the Protector provisions migrated into American usage.
FORBES: Trust Protectors -- What They Are And Why Probably Every Trust Should Have One
Deutsche Bank, for example, created and help manage 309 offshore companies and trusts through its Singapore branch, the journalists reported.
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By contrast, offshore tax avoiding trusts seems to have played a substantial role in the growth of the Pritzker fortune.
The report revealed details relating to the construction of thousands offshore companies and trusts and shined light on the secret dealings of wealthy individuals world-wide.
They've been pushing everything from hidden offshore accounts, bogus domestic trusts and discredited "tax protester" arguments (say, that the income tax isn't legal) to abusive insurance, deferred compensation and charitable deduction schemes.
Hiding income offshore, abuse of charitable organizations and deductions, abusive retirement plans, and misuse of trusts made the list again.
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