National Campaign Clarifies Misconceptions About Foreign Asset Protection Trusts

Blake Harris Law and Verdon Law Group have launched a national public-information campaign to correct misconceptions about foreign asset protection trusts (FAPTs). The initiative aims to educate families and their advisors about the lawful use of these trusts in estate planning.

The campaign, led by Washington, D.C., attorney Lanny J. Davis, seeks to address inaccuracies that have emerged in the public discourse. Davis, who previously served as the White House Special Counsel, will work to clarify the legal distinctions between legitimate, advance asset-protection planning and unlawful efforts to evade existing creditor claims.

According to the press release, FAPTs are established outside the United States, often in jurisdictions such as the Cook Islands, and can be used as part of lawful family estate planning, subject to applicable law. The campaign will focus on explaining the legal differences between properly formed, independently administered trusts and cases involving late transfers, retained control, misconduct, fraudulent conveyances, or violations of court orders.

Blake Harris Law and Verdon Law Group have highlighted a chart published by Nevada estate-planning attorney Steve Oshins titled "45 FAPT Cases Gone Wrong." An analysis by Blake Harris Law found that some entries in the chart did not involve foreign trusts, and not a single cited case involved the failure, on the merits, of a properly structured offshore trust. The analysis also revealed that Mr. Oshins had counted the same case as if it were two separate failures in his chart.

In response to these findings, Blake Harris Law and Verdon Law Group have sent a letter to Mr. Oshins, requesting a review of the remaining publication and correction of any inaccuracies. The law firms are also asking that Mr. Oshins's related Leimberg Information Services Asset Protection Planning Newsletter #450, which lists 29 purportedly failed foreign asset protection trust cases, be reviewed and corrected if necessary.

The broader purpose of the campaign, as stated by Davis, is to ensure that families and their advisors can make informed decisions based on accurate descriptions of the law and the underlying court records.

The campaign will provide prospective clients and their advisors with documented information about legitimate, advance asset-protection planning. It will also emphasize the importance of examining the underlying facts and holdings of cited cases meticulously before characterizing them as failures of foreign asset protection trusts.

Blake Harris Law focuses exclusively on offshore asset protection and serves clients worldwide. Verdon Law Group, on the other hand, advises families and business owners in the United States and abroad on asset protection, wealth preservation, and estate planning. Both firms are committed to ensuring that families can protect their assets through lawful and informed planning.