The Low Profiler is usually set up in the Cook Islands and operates under Cook law. However, since it has a U.S. Trustee and U.S. Protector, for IRS purposes it is not a foreign trust. The IRS says that since the trust is controlled from within the U.S. and is subject to the U.S. court's jurisdiction, no special reporting is required. Basically, Low Profiler Asset Protection Trusts are treated the same as living trusts. Low Profilers have been proven to be highly effective for asset protection purposes.
Because most creditors back off quickly once they find that a Low Profiler is in the picture, in reality, the Low Profiler rarely has to become an IRS recognized offshore trust. . If the Low Profiler was set up long enough ago so that there is no issue of fraudulent conveyance, the creditor knows that an attack is futile. In fact many creditors that could make a fraudulent conveyance argument rarely do. It is simply too expensive for them to go down that path. In the 35 years I have practiced law, only two trusts needed to convert to offshore status. In all other cases the creditor either walked away or the client was able to negotiate a satisfactory settlement.
It has a U. S. Managing Trustee which can be your best friend
It has an Offshore Custodian Trustee which is a trust company in the Cook Islands.
It has a U.S. Protector which can be you
It is Registered in an Asset Protection Jurisdiction, normally the Cook Islands
Video "Low Profiler - Asset Protection Trusts For Those Who Dislike IRS Reporting",
Low Profilers are domestic asset protection trusts at inception. However, in the face of an aggressive creditor, they morph into foreign asset protection trusts. When that happens the U.S. Managing Trustee is fired. Thus, there is no U.S. court that can control the trust, and no U.S. court has jurisdiction over the trust. The Low Profiler is now managed solely in a jurisdiction with laws and courts favorable to trust assets.
