International Trusts and assets protection

Abstract

The aim of this brief paper is to clarify the relation between protecting assets through a trust and the necessity of safeguarding creditors from acts that may be detrimental to their rights. Following this approach, it will be shown that a trust is a legitimate way to protect assets, but it cannot be stretched to the point of being abused. Thus some remedies have been adopted to avoid potential
abuses, basically dating back from the Statute of Elizabeth. However, protection of creditors’ rights may be more or less effective depending on which kind of asset is protected, as well as on the fact that the trust has been set on an off-shore jurisdiction.