The 10 Biggest Legal Mistakes Physicians Make When Using Offshore Trusts

By Patricia Donlevy-Rosen, Esq.

Executive Summary

Many physicians, due to lack of information or misinformation, do not take advantage of the full spectrum of asset protection legally available to them. As a result, rather than effectively protecting their assets from creditors, they leave their assets exposed and incur unnecessary expenses, legal and otherwise. Therefore, physicians should proceed with caution and use experienced counsel when considering how to best protect their assets or use offshore trusts.


Mistake 1        Not Getting Advice of Experienced U.S. Counsel

Mistake 2        Making Erroneous Assumptions about What an Offshore Trust Entails

Mistake 3        Assuming That All Offshore Trust Documents Provide Equivalent Protection

Mistake 4        Assuming That All Offshore Trust Jurisdictions and All Trust Companies Are Equivalent

Mistake 5        Making the Physician or the Physician’s Spouse a Trustee or a Protector

Mistake 6        Failing to Transfer or Receive OAPT Assets Properly

Mistake 7        Failing to Understand How Distributions/Benefits Can Be Received

Mistake 8        Assuming That Transfer of an Immovable Asset’s Title to an OAPT Will Provide Protection

Mistake 9        Purchasing Annuities or Life Insurance Contracts Instead of Implementing an OAPT with a Loan Structure

Mistake 10      Assuming That OAPTs Provide Income, Gift, or Estate Tax Advantages


 The above has been excerpted from the SEAK text, The Biggest Legal Mistakes Physicians Make and How To Avoid Them