@Benjamin A Ersing good question. And @Mike S. I did not mean to forget about the second part of your question regarding foreign owned assets. The quick answer is Yes the Bridge Trust can hold those assets.
To the first part of your question Ben, This system is recommend for people who hit that $1MM net worth mark or are just about to hit it. And net worth is minus liability. That may seem lower then you would expect and surprise you. What we have seen and track over the years is that the threshold at which clients are most interested in protecting their assets is when they have a net worth between $500k - $2.5 MM. And you would expect that number to be more like $5-$10 MM and up. The reason though is that saving between $500k-$2.5 MM is hard to do. It takes most people a lifetime of hard work and commitment. So like anyone interested in asset protection, you are sensitive to risk around that nest egg. And over the years they are becoming more sensitive as lawsuits grow. They realize the shortcoming of LLCs and want the comfort of very strong protection. So the $29k to protect $1MM or more at that point makes financial sense.
Generally you are looking at healthcare professionals (doctors, dentists), business owners, executives with high salaries, and those making a household income of $250k annually + and investing. Or professional investors with cash flow and equity. This is not going to be a system for your new investor of low-income earner. It would not make financial sense. The new investor should start small, with an LLC, then as they grow move into the AMLP, and scale and grow into the Bridge Trust or FAPT.
To the second pat, For the U.S. resident investing in and owning foreign assets I am all for global investing. Even in real estate. Its great diversification, and harder for U.S. creditors to attach. Just pay attention to your tax forms and reporting requirements and bank account disclosures. Talk to your CPA. If the property is held by a foreign corporation with 10% or more U.S. ownership, a foreign partnership or LLC, or a foreign trust or estate, you will need to report that ownership on IRS specific foreign financial asset forms, depending on your reporting threshold. Just understand how the laws and regulations in the OTHER countries also and how it affects your U.S. taxes. Consult your CPA to discuss your situation.
For the Asset Protection side of this question, it is depends. Often it’s best to just leave foreign owned assets as it is and not in the trust. However, the Bridge Trust, itself, has no issue holding foreign assets just like an Revocable Living Trust would not, unless of course there is a restriction on the foreign side. We would usually defer to counsel in the foreign jurisdiction instead of trying to answer because we would need more information on that specific foreign asset. Short answer is basically Yes the Bridge Trust can hold those assets but if it should will be something would need to look at on the analysis.
Now, If you are a foreign investor investing in the US you would create a Domestic LLC in the U.S. which would be owned by a special version of the Bridge Trust for foreign resident investors that would be used as an alternative version with NO U.S. Jurisdiction. And for these foreign investors investing in the U.S., they are going to have to pay attention to tax's of their ownership. The income that these foreign investors make on the asset can be subjected to high US Tax rates. So for the foreign resident investor investing in the U.S. talk to a CPA and US attorney before you invest in the U.S. and get your structure properly set up and ownership set up right.
