The group says it's services include providing oversight of the foreign trustee of an Overseas Asset Protection Trust on the Isle of Man, assurance services to contracting parties in international business dealings, and assisting firms and clients in forming trusts with consultations with U.S.-based international lawyers.

Additional services include assisting firms in adding Overseas Asset Protection Trust formation services to professional practices, planning and forming overseas structures to meet client international business and estate and tax planning needs, and providing second opinions on international tax and/or asset protection proposals.

Vernazza, widely known in the CPA profession as a vocal supporter of the American Institute of CPAs personal financial specialist designation, says the Oversight group works as both "protector" and "enforcer."

The group charges a retainer of $1,250 per year for "protector" services, and $1,500 per year for "enforcer" services. Fees may include $4,750 to form and $2,750 total per year retainer for both the trustee and protector.

For professional firms, the Oversight group is offering services in designing marketing materials and technical support. The group projects that some of its 6,000 clients can up to $750 per hour for the asset protection services.

"With an overseas trust, it is common for the grantor to appoint an independent protector," Vernazza said. "The protector acts as an overseer of the foreign trustees in the exercise of their duties. Many powers can be granted to the protector. Usually, in asset protection trusts, the protector has the power to remove trustees, appoint new trustees, change the venue of the trust, and change the country whose laws will govern the trust. The protector has the right to obtain any information about the affairs of the trust or its companies from the trustees or officers. The protector can also co-sign on accounts thereby making it mandatory that both the trustee and protector sign-off on any withdrawals from an account."

The duties of the enforcer are determined by the trust deed and general law, Vernazza said. The enforcer's duty is to ensure that the trustee is properly carrying out their duties.  Many times the enforcer gives assurances to the parties that no funds are released to one party until certain conditions are met by the other party.

-- SmartPros News Staff

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