Asset Protection

Asset Protection: Why Go Offshore?

By July 30, 2019 No Comments

An international financial plan accomplishes all of the goals of a traditional domestic estate plan… and often does so more effectively.

An international financial plan is a tested, proven strategy that uses a centuries-old English common-law device to achieve more effectively the goals of every good estate plan. Creating an offshore trust offers three distinct benefits:

  • Asset protection
  • Income tax deferral or elimination
  • Estate tax reduction or elimination

Asset Protection. The likelihood of being targeted for litigation has never been higher than today. You do not necessarily have to lose a lawsuit to be a loser. The mere cost of defending oneself can be financially devastating, and the protection of your personal assets should be of paramount concern. We can recommend an offshore asset protection trust and other tools that, if properly set up, will position your assets legally beyond the reach of potential creditors.

Income Tax. One of the principal reasons a person should consider an offshore strategy is income tax deferral or elimination. If you are not spending every dollar you earn, the proper offshore structure may help you defer or eliminate a significant amount of U.S. income taxation. If your business extends beyond U.S. borders, income you earn abroad may not be subject to U.S. income tax. As a result, you could have up to 35% more money with which to operate, compared to the manner in which you are presently investing or conducting business operations.

Estate Tax Reduction or Elimination. Along with the deferral or elimination of income taxes and the protection of assets, an individual who has accumulated significant wealth should be concerned with the preservation of his or her estate. Current U.S. law still imposes onerous tax rates on the value of one’s estate at death, possibly resulting in up to 48% of your estate being paid to the government in taxes. An offshore strategy can achieve very favorable results in the estate tax area; we routinely develop offshore strategies that effectively preserve for one’s heirs the largest estate legally permissible without sacrificing control over the assets.