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THE BRIDGE TRUST® · LODMELL & LODMELL
Foreign protection.
Domestic simplicity.
Access to foreign asset protection without the everyday complexity of starting offshore.
The Bridge Trust® is designed for clients who want a foreign asset protection trust ready when needed, with dramatically simpler compliance and maintenance while it remains domestic.
WHY THE BRIDGE TRUST EXISTS
A plan for the life you live.
And the risks you hope never arrive.
A foreign asset protection trust can be a powerful tool. But foreign administration also brings ongoing trustee involvement, reporting requirements, and expense. Most clients want strong protection without making everyday ownership unnecessarily complicated.
The Bridge Trust® brings those priorities together. It is established with a foreign component, while designed to qualify as a domestic grantor trust for U.S. tax purposes during ordinary administration. Its terms provide a path to foreign trusteeship when the circumstances warrant it.
The advantage is having the option and a plan already in place.
WHY CLIENTS CHOOSE THE BRIDGE TRUST®
Protection you can live with.
The value of an asset protection plan is measured over years. It needs to offer meaningful protection when a serious risk arises, while remaining practical to manage in everyday life. The Bridge Trust® is designed around that balance.
Flexibility: keep your options open.
You may want access to foreign asset protection without beginning foreign administration today. The Bridge Trust® builds a foreign component into the original plan while allowing the trust to operate domestically during ordinary circumstances.
That gives you and your advisors room to consider the situation as it develops. If foreign trusteeship becomes appropriate, the trust’s provisions establish the path. The central advantage is having that option available within an existing plan.
Compliance: make the ordinary years simpler.
A foreign trust can bring a substantial annual reporting commitment. The Bridge Trust® is designed to qualify as a domestic grantor trust during its domestic phase, which can substantially simplify the work involved in maintaining it.
While it qualifies as domestic, foreign-trust reporting generally does not apply solely because of the trust. Ordinary tax and recordkeeping obligations continue, and your CPA should confirm the requirements. If the trust becomes foreign, additional reporting and administration come with that change.
Cost: consider what it takes to maintain the plan.
The setup fee is only part of the picture. Trustee administration, accounting, and ongoing legal work all affect the cost of keeping a trust in place. Those commitments matter when your plan may need to serve you for decades.
Domestic administration can reduce the recurring work and expense associated with starting with a foreign trust. A useful comparison looks at the complete picture: initial planning, annual maintenance, and the additional costs that could arise if foreign administration becomes necessary.
Control: keep everyday management familiar.
Protecting what you have built should come with a clear understanding of who makes decisions. During the domestic phase, the Bridge Trust® can allow you to serve as the initial trustee and manage assets within the authority established by the agreement.
If the foreign provisions take effect, trustee authority and the control you retain change. Understanding both phases from the beginning helps you choose a plan that fits how you want to manage your assets today and respond to risk in the future.
Continuity: keep your protection in place.
A plan has lasting value when you maintain it. If its costs or administrative demands become too burdensome, it becomes harder to keep the documents, funding, and professional relationships current.
The Bridge Trust® is designed to make that ongoing commitment more manageable. Simpler ordinary-year administration supports the larger goal: a plan you can keep in place, review as your circumstances change, and have available when it matters.
Together, these benefits support one objective: access to foreign asset protection with a domestic routine that is easier to live with.
ONE TRUST. TWO PHASES.
Build the bridge before you need it.
The foreign component is part of the original planning. It is not something improvised when a problem appears.
Domestic simplicity
Maintain the trust and related entities, manage assets within your documented role, and coordinate ordinary tax reporting with your CPA.
- Domestic grantor-trust treatment, when qualified
- Defined day-to-day management roles
- Ongoing reviews as your life and assets change
under the trust terms
Foreign protection
When the agreement’s conditions are met, foreign trustee provisions can take effect. Counsel and the trustee assess the response in light of the facts and applicable law.
- Foreign trustee authority and administration
- Foreign jurisdiction’s legal framework
- Additional tax reporting and ongoing costs
Trustee changes and asset movements must comply with the governing documents, applicable law, and any court orders. A change of jurisdiction does not erase existing obligations or guarantee an outcome.
AN EXISTING RELATIONSHIP, NOT A LAST-MINUTE REQUEST
The offshore trustee is already part of the plan.
A common misunderstanding assumes that a client waits until a lawsuit appears and then asks an unfamiliar offshore trustee to step in. That is not how a properly implemented Lodmell & Lodmell Bridge Trust® works.
The Special Successor Trustee is a party to the trust and signs the agreement when the plan is established. The client and trust complete the trustee’s identity verification, due diligence, compliance review, and onboarding in advance. The professional relationship therefore exists before an Event of Duress. Triggering the foreign provisions calls on an accepted role under an existing agreement.
Every licensed trustee must still comply with its fiduciary duties, local law, anti-money-laundering rules, and regulatory obligations. That is true for every trust, including one that is fully foreign from its first day. It is different from suggesting that the Special Successor Trustee first decides whether to participate only after trouble begins.
In nearly 30 years of Bridge Trust® experience, Lodmell & Lodmell has never had a Special Successor Trustee fail to accept and serve when a trust was properly triggered by an Event of Duress.
This operating history does not guarantee the outcome of a future matter. It does show that the trustee relationship is operational rather than hypothetical.
Domestic for tax purposes can still include a foreign legal framework.
Tax classification and legal situs answer different questions. The Bridge Trust® is registered offshore from inception in the Cook Islands, Nevis, or Belize. During ordinary administration, it may qualify as domestic for U.S. tax purposes by satisfying both parts of the test under Internal Revenue Code Section 7701: a U.S. court can exercise primary supervision over administration, and U.S. persons control all substantial decisions.
When the trust’s foreign provisions properly take effect, it no longer satisfies that two-part domestic trust test. Its offshore registration was already established at formation. Its U.S. tax classification changes because it no longer qualifies as domestic.
Read the detailed trustee acceptance analysis →IS IT RIGHT FOR YOU?
Start with your assets.
Then consider your risks.
The Bridge Trust® is worth exploring if you want access to foreign asset protection while keeping ordinary administration more manageable.
A foreign trust from the outset may make more sense for exceptionally high risk, significant international circumstances, or a preference for foreign administration. Your assets, timing, and goals guide the choice.
See how it fits your assets in the Planning Tool →CLEAR ANSWERS
A few important distinctions.
What tax compliance applies while the trust is domestic?
While the Bridge Trust® satisfies the U.S. court and control tests, ordinary U.S. grantor trust compliance applies. In many cases the trust does not need a separate income tax return because its activity is reported on the grantor’s individual return. The exact filing requirements depend on the trust, its assets, and its transactions, so your CPA should confirm them each year. If the trust no longer qualifies as domestic, foreign trust reporting requirements, including Forms 3520 and 3520-A, generally apply. Read about foreign trust reporting →
Do I have to move everything offshore today?
The Bridge Trust® is designed to allow domestic administration at the outset. Funding decisions depend on the assets involved and the structure of your plan. Foreign administration is a separate step governed by the trust’s provisions and circumstances.
What if a claim already exists?
Discuss it with counsel before creating or funding a plan. Existing or foreseeable claims, transfer restrictions, and court orders affect what is appropriate. Early planning provides more options; a trust is not a way to disregard those obligations.
STRENGTH THROUGH FLEXIBILITY
Plan for protection.
Keep life manageable.
Let’s discuss whether the Bridge Trust® fits your assets and goals.
Educational information. Recommendations depend on your circumstances and legal and tax review.