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Are you a high-net-worth individual looking for ways to protect your assets and legally cut back on taxes?
One option to consider is setting up an offshore trust company. An offshore trust is an estate planning strategy that will give you legal jurisdiction beyond U.S. borders. You’ll establish a trust in a different nation, transfer certain assets to the trust, and have the assets managed by trustees if you don’t want to be hands-on and manage it independently.
You don’t have to be filthy rich to get some of the benefits of parking assets offshore. Keep reading to learn about six reasons to consider establishing an offshore trust company.
- Protect Your Assets
The primary reason to consider setting up an offshore trust is that it effectively protects your hard-earned assets from creditors. And if you choose the offshore jurisdiction correctly, you’ll have much more protection than you would ever get for your assets in the U.S. There are different offshore locations popular among people looking to safeguard their assets. One of the most popular is the Cook Islands — and there are some good reasons for this.
“I advise my clients that the best jurisdiction for setting up an offshore trust is the Cook Islands,” says Gideon Alper, an attorney at Alper Law in Florida. “The Cook Islands have debtor-friendly laws that make it very difficult and expensive for a domestic creditor to collect on assets transferred into the trust.”
- Enjoy the Confidentiality
When storing your assets in an offshore trust company with trust laws favorable to U.S. investors, you’ll gain a high level of confidentiality that you won’t have under a domestic trust. One of the reasons people safeguard their assets offshore is that they’ll have a measure of privacy.
- Reduce Tax Burden
Setting up an offshore trust company can also help you reduce the amount you owe the tax man. Some people mistakenly think that offshore trust companies are only for uber-rich people seeking to conceal financial resources to reduce their tax bills illegally. Yes, these saving and investment vehicles can be misused, but they can also be used legally. That’s one reason it’s in your best interests to consult with a lawyer specializing in the space. You’ll get recommendations on the best tax-free jurisdictions and the right course of action.
- Gain More Security
Are you concerned about the possibility of economic upheaval or changing tax laws in the U.S.? You can gain security by putting your eggs in multiple baskets. Choose a reputable offshore destination to protect you against changes in banking policies or tax rules.
- Steer Clear of Probate
By setting up an offshore trust company, you can ensure the assets included in this investment vehicle are allocated per your will after you pass away. So, your family and loved ones will be looked after courtesy of whatever assets you wish to leave them. Are charitable organizations or causes near and dear to your heart? You can also use your offshore trust company to ensure they receive whatever assets you’ve earmarked.
- Option for Professional Management
You’ll also have the option of securing professional management over your offshore trust, which can help increase the return rate. It can also be a good strategic move if you’d rather focus your time on other matters.
It makes sense to consider setting up an offshore trust company for these reasons. Of course, you need to know exactly what you’re getting yourself into, which is why it makes sense to see a lawyer specializing in advising U.S. residents desiring to move some of their assets offshore. You’ll be able to make informed decisions after reviewing things with your lawyer.
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