Ch. 21: Foreign COPEs

• Exotic Entities

Synopsis: Discusses the use of non-traditional entities as it relates to debtor-creditor planning.

Definition: Hybrid Entity – An entity that does not have a classic form, such as a corporation or partnership, but instead exists as a combination of entities, such as a combination of trust and corporation. Even as late as the early 1990s the LLC was considered to be a hybrid of a corporation and a partnership, for example, but it has since become a classic form of business entity.

• Offshore LLCs

Synopsis: Discusses the predominant offshore jurisdictions that have limited liability company statutes.

Definition: Offshore Limited Liability Company (OLLC) – A limited liability company formed pursuant to the laws of a foreign debtor haven jurisdiction, such as the Nevis LLC.

• Use of Offshore LLCs as Asset Protection Tools

Synopsis: Describes basic strategies for using OLLCs for asset protection planning.

• Utilizing an Offshore LLC

Synopsis: Discusses probably hurdles that creditors would face in attacking OLLC structures, and the use of OLLCs in conjunction with foreign trusts and domestic ocmpanies.

• Taxation of Offshore LLCs

Synopsis: Discusses the probable U.S. tax treatment of OLLCs.

• The U.K. Limited Liability Partnership

Synopsis: Discusses the basics and operations of a United Kingdom Limited Liability Partnership, and its potential asset protection advantages from the U.S. viewpoint.

Definition: U.K. Limited Partnership (UKLP) – A limited partnership formed under the United Kingdom’s Partnership Act of 1907.

Definition: U.K. Limited Liability Partnership (UKLLP) – A limited liability partnership formed under the United Kingdom’s Limited Liability Partnership Act of 2000.