Prior to 1997 and the enactment of new trust legislation in Delaware and Alaska, the offshore asset protection trust was the only real way to create an effective self-settled spendthrift trust. Popular offshore jurisdictions for these trusts include Nevis, St. Kitts, the Cook Islands and the Bahamas.enerally, the offshore asset protection trust will be deemed to be a foreign grantor trust.. The trust will be deemed a grantor trust because there will be a U.S. beneficiary. This status means that the contributions to the trust will be free of income tax consequences.