The Bridge Trust®: The Ultimate Hybrid Asset Protection Trust Solution
In today’s world of financial uncertainty, protecting your wealth from lawsuits, creditors, and unexpected financial threats is essential. When it comes to asset protection, the solution needs to be more than just a domestic trust—it needs to be robust enough to withstand legal pressure.
Domestic trusts may offer convenience, but they can be pierced by U.S. court orders. Offshore trusts, like those in the Cook Islands, provide unparalleled protection, but they often come with complexities, high costs, and mandatory government disclosures.
That’s where the Bridge Trust® comes in—a revolutionary asset protection tool that bridges the gap between domestic simplicity and offshore strength. It’s like a hybrid car that combines the best features of two systems for efficiency and power. Here’s everything you need to know about how the Bridge Trust® works, its key features, and why it’s the gold standard for high-net-worth individuals and high-risk professionals.
What is the Bridge Trust®?
The Bridge Trust® is a proprietary trust that integrates the strengths of offshore and domestic trusts into one comprehensive solution. Unlike traditional trusts, which are either fully domestic or fully offshore, the Bridge Trust® is both.
Key Facts About the Bridge Trust®
• Cook Islands Foundation: The Bridge Trust® is a fully registered Cook Islands trust from the day it’s created, giving you immediate access to the strongest asset protection laws in the world.
• Bridged Structure: Despite its offshore registration, the trust is “bridged” back to the U.S. for tax purposes, operating as a domestic trust until a legal threat arises.
• Seamless Transition: If a lawsuit or creditor claim emerges, the bridge is removed, and the trust transitions to a fully functioning offshore trust, shielding your assets behind Cook Islands laws.
For questions on how legitimate the Bridge Trust is, read this article:
https://btblegal.com/blog-articles/f/is-the-bridge-trust%C2%AE-legitimate
The Basics of Offshore Trusts
Offshore trusts, particularly those governed by Cook Islands law, are considered the gold standard in asset protection.
As I have mentioned in previous articles, Cook Island Trusts are renowned for their strong legal framework that provides unparalleled protection against creditors. The laws in the Cook Islands make it exceedingly difficult for creditors to access its assets, allowing individuals to protect their wealth effectively. The Cook Islands Trust Act (enacted in 1984) was drafted for the sole purpose of making it very clear and very difficult for anyone other than the intended beneficiaries of the Trust to access the Trust assets! To do this, the Trust Act implemented very strong statutory hurdles, listed below.
There have been very few cases in which a plaintiff has actually tried to extract assets from a Cook Islands Trust. In Every cases, they have failed to force an extraction of assets! This is true even when the Trust was drafted very poorly and when the Settlors where actually doing something illegal. Meaning, the Trust still worked. See FTC vs. Affordable Media case, otherwise famously known as the “Anderson Case.” As well as U.S. vs Grant and SEC vs Solow.
U.S. Courts have been frustrated at every turn whenever they have come up against a Cook Islands Trusts, but not a single court has ruled that the creation of a Trust is in any way illegal or immoral. In fact, just the opposite has occurred! for example, in one well-known asset protection case the court noted that the Trust was established “for the legitimate purpose of protecting family assets.” See Reichers vs. Reichers, No. 21833-94 (Weschester County Supreme Court., June 30, 1998) N.Y.L.J. (July 8, 1998.
Here’s why:
Why the Cook Islands is the Best Jurisdiction
1. Statutory Non-Recognition: The Cook Islands do not recognize U.S. court orders, meaning creditors must start their case from scratch in a foreign court.
2. High Burden of Proof: Plaintiffs must prove their case beyond a reasonable doubt—the same standard used in criminal trials.
3. Financial Barriers: Plaintiffs must post a bond, cover legal fees, and fly in a judge from New Zealand. If they lose, they also pay your legal fees.
Despite the most effective trust in the World, here is why a Purely Offshore Trust may Not Work for Everyone
Despite their benefits, fully offshore trusts aren’t always practical:
• Excessive for Most People: Unless you’re facing an immediate legal threat, a purely foreign trust can be unnecessary.
• High Costs: Properly setting up and maintaining a Cook Islands trust is expensive.
• Mandatory Disclosures: Offshore trusts require significant reporting, including IRS Forms 3520 and FACTA disclosures.
• Loss of Control: Offshore trusts typically require handing over control to a foreign trustee, which can be uncomfortable for some.
Key Features of the Bridge Trust® Design
When searching for effective and legal asset protection strategies, The Bridge Trust® was specifically created to overcome the limitations of domestic and offshore trusts. Here’s what makes it unique:
1. Extensive Spendthrift Provisions
Spendthrift provisions restrict creditors’ access to the trust’s property, offering an extra layer of security. This ensures that assets held within the trust are protected from claims by creditors.
2. Irrevocability
The Bridge Trust® is irrevocable, meaning courts cannot force the grantor to revoke the trust for the benefit of creditors. This feature preserves the trust’s protective capabilities, even in high-stakes legal situations.
3. Grantor Trust Status
For tax purposes, the Bridge Trust® is classified as a Grantor Trust.
• This means the IRS does not consider it a separate taxable entity.
• The trust’s income, gains, or losses are reported directly through your personal tax return, making tax compliance simple and efficient.
According to Treasury Regulations § 301.6109-4(b)(2) and § 1.671-4(b)(2), a Grantor Trust does not require a separate taxpayer identification number if the grantor’s Social Security Number is used. This eliminates the need for a separate tax return.
4. Bridged Structure
The Bridge Trust® operates domestically for tax simplicity but transitions seamlessly to a full offshore trust if a legal threat arises.
Think of it like having dual citizenship—you can hold both a U.S. passport and a Swiss passport. As long as you follow the tax rules, no one cares that you have the added protection of the Swiss option.
Why Choose the Bridge Trust®?
By combining the strengths of offshore trusts with the ease of domestic trusts, the Bridge Trust® offers unparalleled protection with minimal complexity.
Key Advantages:
• Superior Asset Protection: Provides unmatched protection against lawsuits and creditor claims.
• Tax Efficiency: No complex foreign filings—just simple reporting through your personal tax return.
• Flexibility and Control: You stay in control of your investments until the moment offshore protection is needed.
Real-Life Case Law Examples
Sadly, domestic asset protection trusts have failed time and time again in U.S. courts. As is the primary drawback of all domestic tools, they are ultimately subject to the U.S. Courts. This is the same for Domestic Asset Protection Trusts as well. Several domestic cases have shown how the DAPT’s have completely failed.
Also, due to the case law, there is a question about whether the protection of the Settlor of the DAPT will hold if they are not a resident of that state. Many attorneys, including myself, have doubts that a Nevada Trust, Wyoming Trust, Delaware Trust or Alaska Trust is truly going to stand up to Federal District Court judgments.
1. In Re Huber (2013) – A Washington court invalidated an Alaska trust, applying Washington’s less favorable laws instead of Alaska’s.
2. Dahl vs. Dahl (2015) – A Utah court pierced a Nevada trust during a divorce, ruling that it failed to meet legal formalities.
3. Battley vs. Mortensen (2011) – An Alaska trust was breached after the court deemed the asset transfers fraudulent.
4. Toni 1 Trust vs. Wacker (2018) – A Wyoming trust was disregarded because the court did not uphold its choice-of-law clause.
In all four of these cases the DAPT failed completely exposing all of the assets of the trust to the creditors. This has set a very disturbing precedent about how well a DAPT can hold up in court when it is seriously threatened. These cases highlight the vulnerabilities of purely domestic asset protection trusts.
The Bridge Trust® avoids these pitfalls by operating under Cook Islands law when activated, making it nearly impossible for creditors to break through.
For a full breakdown of these cases and more, click this link and scroll to find the case law summaries.
https://btblegal.com/blog-articles
Conclusion: Building a Financial Fortress
The Bridge Trust® isn’t just an asset protection tool—it’s peace of mind. By combining the power of a Cook Islands trust with the simplicity of domestic management, it offers the strongest legal protection without the complexities of a fully offshore trust.
If you’re serious about protecting your wealth, don’t settle for partial solutions. The Bridge Trust® is the ultimate financial fortress—offshore strength with domestic simplicity.
👉 Learn more:
• Visit our blog for a deeper dive into asset protection strategies.
• Read my #1 best-selling book “Over Exposed” on Amazon for real-world case studies and more insights.
Protect what you’ve built—before it’s too late.
For a legal consultation call to speak with an asset protection lawyer at (888) 773-9399
By: Brian T. Bradley, Esq.
