Estate Planning and Asset Protection for Your Plan B: Recording of the Schiff Sovereign Total Access Q&A
On September 30, 2026, Milan Solarz-Patel, J.D., LL.M. (Taxation), of Auric Private Client Advisory LLC joined James Hickman, co-founder of Schiff Sovereign, for the monthly Total Access members’ call. The subject was estate planning and asset protection, the one topic that the Total Access Conference in Panama City did not have time to cover. Schiff Sovereign has kindly permitted us to share the recording.
Our earlier post on the questions for the call described what members wanted to ask. The discussion covered the following points.
Wills and Revocable Trusts
A will takes effect only through probate, a court process that is public, can be slow, and must be repeated in each state or country in which the decedent owned real property. A revocable trust avoids that process for the assets that it holds. The grantor remains in control during life, and a successor trustee can act at once upon death or incapacity. A revocable trust does not reduce estate tax and does not protect assets from the creditors of the grantor. Its purpose is to make matters orderly and easier for the family.
A Trust Works Only If It Is Funded
Signing the trust is the first step. Bank and brokerage accounts must then be retitled in the name of the trustee, real estate must be deeded to the trust, and beneficiary designations for retirement accounts and life insurance must be reviewed. Assets left outside the trust pass under the will and through probate.
Digital Assets
Cryptocurrency held in self-custody can be lost to the family if no one is able to find the keys. An estate plan should record which digital assets exist, where they are held, and who is to have access. Keys and passwords should be stored securely and kept out of the will, because a will becomes a public record in probate.
Estate Planning and Asset Protection Are Different
Estate planning determines who receives assets and on what terms. Asset protection addresses a different question: whether a future creditor can reach those assets during the life of the owner. The two are related, and some of the tools overlap, but a revocable trust serves only the first purpose. Asset protection requires an irrevocable structure that is in place before a claim arises. A transfer made after a claim has arisen can be set aside.
Domestic and Offshore Trusts
Several U.S. states, including Nevada, South Dakota, and Delaware, permit asset protection trusts. A domestic trust remains within the reach of U.S. courts. A judgment from one state must generally be honored in the others, and a U.S. trustee is subject to the orders of a U.S. court. An offshore trust is governed by foreign law and administered by a trustee who is outside the jurisdiction of U.S. courts. A creditor must generally begin again in that jurisdiction and under its rules. Milan and James explained why they regard that difference as important.
Cook Islands, Nevis, and Belize
Each of these jurisdictions has legislation written for asset protection. In general, that legislation declines to recognize foreign judgments against the trust, shortens the period within which a creditor may challenge a transfer, and places a heavy burden of proof on the creditor. The discussion turned to practical matters that count as much as the statute: the experience of the trustee, banking and custody, cost, and the record of the local courts. Milan addressed similar questions earlier this year at the Southpac Offshore Planning Institute.
Assets in More Than One Country
Property abroad adds a second legal system to the estate. The other country may apply forced-heirship rules or its own inheritance tax, and it may require a local will. Wills in different countries must be coordinated so that one does not revoke the other.
When an Offshore Trust Makes Sense
An offshore trust adds cost and complexity: formation fees, annual trustee fees, and U.S. reporting. For many families, a funded revocable trust, adequate insurance, and domestic entities are sufficient. For a person with significant exposure to liability, substantial liquid assets, or an international life, the additional protection can justify the cost. The answer depends on the facts.
The U.S. Tax Side
An offshore asset protection trust formed by a U.S. person is generally a foreign grantor trust. The grantor continues to report the income of the trust, so the trust produces no tax saving. It does produce annual reporting: Form 3520, Form 3520-A, the FBAR, and Form 8938. Penalties for a late or incomplete Form 3520 or Form 3520-A begin at $10,000 and can be far higher. This reporting is the work that Auric Private Client Advisory LLC performs for clients with foreign trusts.
Our thanks go to James Hickman and the Total Access team for the invitation. More of their work is available on the Schiff Sovereign YouTube channel.
If you have, or are considering, an offshore trust or assets in more than one country, contact Auric Private Client Advisory LLC to review your U.S. reporting.
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