The practice of trust as an instrument of asset protection is increasing


The Trust is an institution of the Anglo-Saxon legal system of Common Law that serves to regulate a multiplicity of juridical relationships of a patrimonial nature usefully employed in the world, but, also in Italy from some luster, with greater diffusion in the center-north. 
In fact, in terms of protection, protection and separation of heritage, in Italy, more and more is talked about, so much so that in recent years there has been an exponential growth of trust deeds as a suitable legal instrument suitable for this purpose and this as the Italian judiciary now considers the Internal Trust to be fully legitimate (so it is called a Trust established in Italy that has as its sole foreign element the sole regulatory law) which is put in place for a purpose worthy of protection pursuant to Article 1322 of the Civil Code according to the convention of the Hague of 1 July 1985, ratified by our Government with Law n. 364 of October 16, 1989, entered into force only from January 1, 1992, with the title “Ratification and execution of the convention on the law applicable to trusts and on their recognition. 
Indeed, for the collective imagination, especially in southern Italy, obviously excluding the experts and some attentive entrepreneurs who are wise to establish separate assets insensitive to executive actions, the Trust is associated with the term “Antitrust”, which has nothing to do with with the first, and is not known as that legal store capable of creating protection for the heritage, making it insensitive to future precautionary actions caused by unwanted or unwanted events. 
Purely by way of example and not exhaustive, the needs worthy of protection can be, among many surely the needs: of the family, of a disabled person, of the loved one, to guarantee a dignified and peaceful future to themselves and, if necessary, to also provide for to their own living needs, to ensure sustenance for their children for studies and work, to guarantee the generational transfer of assets and family businesses without trauma and tax-free and / or for the pursuit of a commercial or philanthropic purpose or purpose, and finally for the protection of the minor, of the incapable, of the disabled for the next day, or when he will remain alone. 
For the protection of these purposes, the legal instruments that our system has are the destination Constraint pursuant to art. 2645 / ter of the Civil Code; the property fund pursuant to art. 170 cc; the Assets destined for single business incorporations ex-art. 2447 / bis and following; the simple companies pursuant to art. 2251/229 cc in which everyone, it is known, is not allowed to have will about the destination and/or enjoyment of the assets upon occurrence, over time, of events and conditions according to precise rules by the settlor arranged as usefully in the Trust. 
On the subject, to tell the truth, it must be said without pretense, that in our country, in the context of vocational professions, there is arrogance, presumably to conceal misinformation, this because the phenomenon of trust in Italy is relatively young and has been the prerogative of wealthy northern lords to protect large heritages to be sent to their descendants without having them dispose of them because perhaps prodigal or incapable or, on the other hand, to screen assets and availability of dubious origin resorting in the latter case to Foreign Trusts. 
In our opinion the Trust is for everyone and not only for rich gentlemen, to segregate and protect licit and non-illicit assets and for deserving and not repugnant purposes and to this, we experts, we dedicate ourselves. 
On the part of those who should emphasize the subject, there is abundant improvisation in dealing with the topic of the institute, so much so as to discourage it because it is considered by some to be inadequate or even elusive for the subject who would intentionally set it up by proposing more customary institutions of separation and protection of the heritage in the belief that these respond better than the Trust. 
Nothing more erroneous. The opposite is true. The Trust succeeds better than any internal legal institute of separation of the patrimony this as flexible and ductile only because established by the subject that disposes of it (for this said settler) for the protection of its interests, provided that they are worthy. The customary internal juridical institutes for the protection of the heritage mentioned above do not allow this at all and are valid for what they strictly foresee, and nothing else. 
The undersigned study deals with asset protection programs and the management of fiduciary assignments carried out through the use of the Trust and administration of the Private Trust Company. 
It performs the functions of professional Trustee for the implementation of fiduciary negotiation programs of various types such as the Trust Holding, the Family Protection Trust, Patrimonial Trust, Generational Trust in function of family pact, Guarantee Trust, Divorce Trust, Cohabitation Trust, Settlement trust, purpose trusts, concordat trusts, commercial trusts, charitable trusts, and others, all these activities, all of which cover and protect personal and real estate, personal and corporate assets, internal and external, which usefully serve purposes worthy of legal protection . 
It is a widespread opinion that the instrument par excellence that protects family assets for the family is that of the Patrimonial Fund pursuant to Art. 167 of the Italian Civil Code. Nothing more erroneous. It has never been and never will be, especially today, in light of the last rulings of the Court of Cassation, for which the goods therein are directly mortgaged without warning from Equitalia and from that creditor whose reasons derive from the obligations assumed by the debtor holding the Fund or contracted for the needs of the family. That is to say, briefly, that the tax debts and corporate debts are considered as family debts and as such, as stated by the Civil Code, must be satisfied by the family assets. Like it or not, that’s true. The judgment of the supreme court is not at all reprehensible but states a principle of law, the one just mentioned. 
For these reasons, but not only, it is believed that it could be useful to illustrate to the Salento entrepreneurs but even before the fathers of the family the peculiarities of this institute and push for the introduction in the facts of business management but also in the family ones. 
If, on the one hand, these arguments, yesterday, did not seem of relevant interest because they were considered pleonastic, on the other, today, interest becomes alive sometimes only by listening to the reasons and opportunities that these programs reveal. 
However, the propensity to employment is all the greater when the entrepreneur over 50 or 60 is part of a family unit to which to guarantee in complete safety, especially for the time in which he will not live, a dignified and serene future. 
Below are just a few of the most important issues for which the trust is enlightening: 
1. The generational transfer of the family business; 
2. The protection of the patrimony for the family and/or for the minor, incapable, disabled only; 
3. The new non-legal instrument for the reorganization of the company in crisis due to over-indebtedness; 
• For the generational succession of the family business. 
It represents an important and crucial event in the life of the company which often depends on its survival. 
Italian entrepreneurs over 60 represent about 60% of the total universe of companies, which leads to believe that in the coming years they will necessarily be committed to dealing with the transition. 70% of whom want to continue the family business. 
The worrying figure that should make us reflect is the low percentage, primarily 25%, of the survival of companies that reach the second generation of entrepreneurs with 15% of these reaching the third generation. Without 100, then the total number of companies, 25 are in the second generation and 3.75 in the third. 
From what has been said we will present and deepen the theme in order to be able to choose the safest of the two legal institutions that the legal system offers for the generational handover of the family business: the Family Pact ex L. 55/2006 and the family Trust ex L 364/1989. 
• The protection of the patrimony for the family and/or for the minor, incapable, disabled only 
A prudent entrepreneur, as far as possible, must put in place a good program of protection and protection of his family nucleus in a future perspective and as a source of financial benefits for the life needs of himself, of the family and of future generations or for one purpose and / or for a program of protection and protection of corporate or corporate assets considered strategic. 
• A new non-legal instrument for the reorganization of the company in crisis due to over-indebtedness; 
A new instrument for the extra-procedural composition of the corporate crisis is the concordat or liquidation trust, according to the company cases, which is making an increasingly large application space in the context of out-of-court solutions to the crisis of the company and of the composition with creditors, in reference to which the institution in question can explain its effects especially in relation to the possibility of establishing a segregation of company assets made available by the same company or by third parties with an additional guarantee for the exact fulfillment of the obligations assumed by the entrepreneur in a state of crisis. 
The main effect of the Trust lies in determining the armouring of the company assets, transferred under the protection of this institution, making them untreatable by creditors, therefore not subject to enforceable and precautionary executive actions, so that they do not see the assets depleted while pending production and satisfaction of the emergency program from the corporate crisis, which will be shared by creditors in the meantime once they have secured their credit by turning their status into a beneficiary of the Trust and not just a simple unsecured creditor. 
For what has been said so far, event or seminar days are strongly recommended in which to better explain the opportunities and peculiarities offered by the institute in question. 
Finally, the discussion of domestic asset protection trust is considered useful and necessary.

Strategy to protect your assets

Every day we are at risk of losing our savings, due to a number of threats that are like thunderclouds hanging over the crowd. And these threats leave their roots in the financial crisis of 2008, when, following US markets, half of the world collapsed.

The current state of the modern global banking system is not much better than it was about seven or eight years ago. The US national debt has doubled, and interest rates of 2-4% are like a drop in the ocean. The Federal Deposit Insurance Corporation, which was established to guarantee bank deposits, currently has liabilities exceeding its capacity of 530%. Before the financial crisis, this amount was only 14%.

But the most frightening thing about the American banking system is that today the banks that were too big to collapse at the time of the crisis have become even bigger today. At the same time, a worldwide hunt for offshore capital was announced, which has not yet replenished the treasury of the leading countries of the world.

The deoffshorization process suggests that governments no longer have sources to replenish the treasury. Printing money is no longer possible, too closely watching the printing presses after the financial crisis. There remain wars that stimulate economic development and enrichment at the expense of other taxes, and offshore harbors, where the most successful hide their capital.

But to overcome offshore destinations is not so simple. First of all, there are too many of them. Secondly, weighty legislative amendments must be universally adopted in order to force businesses to return capital to the country.

The automatic exchange of information, all this significantly affects the existing banking sector, but with proper structuring of the business and selection of an offshore account, it is still possible to protect your assets.

Financial shock protection

The biggest shock you can get if you wake up in the morning to find out that your bank, where all your savings are stored, is illiquid, potentially insolvent, or simply its activity is suspended for some other reason.

Of course, you can hope for state deposit insurance. In the EU, this amount is 100 thousand euros. But what if your capital is higher than this amount? Are you ready to lose it? Most likely no.

Sometimes, if you are knowledgeable about banking, you can hear rumors in time that the bank is in the balance of bankruptcy, but as a rule, this information is strictly classified to prevent panic.

In addition to the poor liquidity of the bank, there is a risk of suspension of the activities of a financial institution. And this risk is increasingly common in Europe at the initiative of the United States.

Last spring, the Andorran Banca Privada d’Andorra (BPA) was suddenly suspended. The bank was accused of aiding fraudulent operations and laundering illegally acquired funds through operations for bank customers. As a result, on March 10, 2015, the US Treasury Department (FinCEN) blamed the bank on the basis of Section 311 of the US Law – PATRIOT Act, which resulted in the receipt of a corresponding Notice of Proposed Rates (NPRM). Then within a few hours, the bank’s activities were paralyzed by correspondent banks, and for another 60 days, all banks refused to cooperate with BPA at the direction of the United States.

But BPA is no exception. In Switzerland, there is a whole program of Swiss banks aimed at declassifying confidential accounts owned by US citizens. Those banks that decide to refuse to cooperate can go straight to the “American guillotine”, and there are no guarantees that you will not have an account in this bank.

Swiss banks continue to pay US tax penalties

US tax harvests, fining Swiss banks

To diversify the risks associated with bankruptcy or suspension of the bank’s activities, it is necessary to have not one but several foreign accounts opened in the most secure tax havens.

Protection against illegal expropriation of assets

Illegal expropriation of assets is not only the result of the banking crisis in Cyprus but also the freezing of your funds in your bank account.

Everyone is well acquainted with the banking crisis in Cyprus in 2013, when, as a result of the fall of Laiki Bank and the restructuring of Cyprus Bank, depositors of the first lost deposits exceeding 100 thousand guaranteed by the EU. Yes, they received in exchange for bank shares of different categories, but you cannot buy anything on these papers.

Governments are eager to get maximum access to the financial accounts of all high-income individuals and entrepreneurs. So in the UK starting this year, individuals and small businesses will have access to their digital tax accounts. And from April 2018, they will have to at least quarterly update the data in Her Majesty’s Tax Administration (HMRC), which is their main source of income. In this case, the digital system will be tied to bank accounts, therefore, if necessary, the tax system can easily deduct taxes from the account or freeze it if necessary.

The UK introduces digital tax reporting for individuals and small businesses

This is very convenient for tax authorities, but someone even asked if entrepreneurs are ready to simply open access to their accounts for the authorities. In the end, this is the money of companies and individuals, not the government.

To the petition of businessmen, the government coldly replied that all this was for the good of the system. Howl and the question arises – are you ready to become part of such a system, when your money goes out of your control? Most likely no. And again the question arises, and maybe it is worthwhile to acquire several offshore accounts so that your money remains yours?

Protection from exchange controls

This is the favorite crown of every government; nothing is better to save a “sinking ship” than to introduce currency controls. The last most striking example was shown by Ukraine. Now, for all currency transfers by an individual in the amount of more than $ 150,000 in equivalent to any currency or precious metals, including if the operation is carried out in UAH, the bank will be personally liable. More precisely, not just the payment posting department will be responsible for the payment made, but a specific person designated by the bank. I wonder how many payments Ukrainian banks will now spend on fixed amounts?

National Bank of Ukraine has introduced new restrictions for banks

Examples of the introduction of restrictions on foreign exchange control abound. Cyprus during the crisis was generally paralyzed for more than two weeks.

When people begin to feel the weakness of the country’s economy, he automatically rushes to the bank to pull out his capital. That is what happened in Greece, and even in China, where investors are withdrawing capital from the country with billions. To prevent such actions, governments introduce currency controls.

The first thing that happens is a ban on currency conversion and transfers, in Ukraine, there is now a certain stage of currency control, only the responsibility was thrown not to the state authorities, but to the banks, so that the banks, and not the government, were to blame for everything.

If you decide to withdraw some of your savings to an offshore, where government debt is low or non-existent, the banking system is stable and the political situation in the country is stable, you probably will not regret it.

Opening a foreign bank account is a simple step that you can take to protect your capital without leaving your home. The main thing to act is not too late.