Making your Offshore Trust
a Foreign Grantor Trust

If you are concerned about your tax situation when being either the Beneficiary or the Settlor (Grantor) of your Offshore Trust, you can use a "Foreign Grantor Trust" (FGT). The set-up is the same as for an "ordinary" Trust, except that an FGT is not having your name mentioned anywhere in the legal documents, and it is not set up by you or on your order/request.. The Trust is set up with someone else as the Grantor (Settlor) and a nominee Beneficiary, chosen by your Trustee-to-be.

Instead of any official titles, you get some specific legal tools to make sure that the Trustee and/or the Protector will do what you want, and only that. With such a set-up, you can honestly answer "no" to all questions about you being the Grantor or the Beneficiary of any foreign Trusts, at least as far as this Trust goes....

For your practical day-to-day use of an FGT, there is no difference from what you would get with an "normal" Trust, but the nature of the legal tools that make this possible is totally different, as you have no formal legal authority to make any management decisions on behalf of the FGT. The benefit to you is the peace-of-mind you can obtain from knowing that you are not providing any false information to your government when answering "no" to all questions about you being the Beneficiary or the Grantor of any foreign Trusts. (No government, including the US government, has any legitimate business asking such questions, though - they are in violation of your fundamental constitutional freedom rights! But you might prefer to fight for those rights at another time than at tax return time when you are alone and vulnerable...)

Because of the extra administrative work involved, you should expect an additional charge of $300-500 for an FGT. Also be aware that many Trustees operating in countries that do not allow FGT's in their jurisdiction cannot help you with this... So, if it is important to you to not have to lie to your government or make false claims on your tax returns, and you do not want the hassle out of disclosing the existence of your Trust, you have to be very selective about whom you get to establish your Offshore Trust!