A fully foreign trust may offer powerful asset protection—but it also creates guaranteed annual reporting obligations that can produce six-figure penalties even when no additional tax is owed. Before recommending an offshore structure, CPAs, wealth managers, and financial advisors should understand the true cost of Forms 3520 and 3520-A, the importance of an independent offshore trustee, and why many clients are better served by a hybrid Bridge Trust® that defers foreign compliance until it is actually needed. This article provides a practical framework for evaluating both the financial and structural risks before sending a client offshore.