Your assets are unsafe if you keep them all in your home country. We all know that diversification is a key to financial safety, but how to keep your assets safe in the best way possible to keep raiders and aggressive competitors at bay and remain protected against adverse political or economic conditions? Foreign trusts are among the top instruments you can use for that purpose. However, it may be inefficient if you choose the wrong jurisdiction that offers little protection. It would be disappointing to lose your assets just because you failed to do preliminary research!
Offshore trusts are the structures set up under the laws of a foreign country to legally protect your securities, business interests, real estate, intellectual property rights, or other valuable assets. You transfer the respective assets to a trust to be managed by a professional trustee that you appoint (a company, a bank, or an individual) and thus park your wealth out of reach of most threats. You can receive distributions made by the trustee as a beneficiary, and the trust may also serve to protect your children’s assets.
The main aspects of proper asset protection against seizure include a well-thought-out structure and arrangements for the ultimate privacy possible in the present-day world.
Think very carefully whether you can manage on your own or you will need expert support. Anyway, you can follow the above link and discuss this matter with a specialist. It will cost you nothing, but you are sure to make the right decision and evaluate your competencies after that.
Offshore Trusts Basic Details
Offshore asset protection relies on a range of measures taken to ensure the best possible financial security for your assets by setting up offshore companies and entities. These structures are typically established in a jurisdiction that offers a more hospitable legal framework than the owner’s country of fiscal residence.
Here are the top 5 advantages of offshore trust formation:
- In case of illegal takeover by relatives of high-ranking officials or divorce, your personal and financial information remains anonymous if court proceedings are instituted.
- Trusts are a legal way to avoid any lawsuits connected with professional malpractice, actions for damages, divorce, and so on.
- The beneficiary legally separates his/her personal assets and liability from the assets and liabilities of the foreign entity.
- Your assets will be protected from lien or any court decision made outside the offshore destination. The matter is that the majority of offshore countries do not recognize the resolutions of foreign courts and require claimants to institute proceedings once more – this time locally. This deters most of those who wish to get your money.
- The vulnerability of your valuable assets, including real estate, will be much lesser in case of defaulted loans.
Affluent people often transfer their assets to safe foreign jurisdictions to avoid political persecution or corruption in their native country. The majority of offshore jurisdictions offer flexible corporate laws that help you avoid many mistakes on the condition that you duly structure your trust and set it up in a suitable jurisdiction.
Offshore Jurisdictions Used for Asset Protection
If you simply own a company in Belize, BVI, or Cyprus, it does not mean that you get ultimate protection for your assets. Offshore companies used to be a real refuge for the capital of wealthy people, but they can no longer be considered reliable enough. Nowadays, you need to design an individual scheme that will ensure a higher degree of privacy.
Correct planning is the key to your ultimate safety. There are various types of trusts, and they serve different purposes. The protection will be efficient if you carefully consider every “ingredient”, including the trustee, beneficiaries, assets, and the trust location.
Let’s take a look at some destinations that are well-suited for offshore structure formation:
- Bahamas. We recommend setting up an investment fund, a trust, or a non-resident IBC here to protect your assets and get the highest degree of anonymity possible.
- Belize. The country provides ideal conditions for export, non-resident IBC registration, and ship ownership.
- British Virgin Islands. It is highly recommended for non-resident IBC formation as it offers zero taxes and minimum operating costs.
- Canada. You can open an LTD here as a disguise for an agency scheme. If you meet certain requirements, you will pay minimum taxes.
- Cyprus. This is a great jurisdiction for setting up a resident LLC, an investment fund, or a trust, and also carrying out import and export operations with EU countries.
- Gibraltar. This is an excellent option for non-resident LTD formation where you can engage in investments, insurance activities, and e-commerce.
- Hong Kong. If you are planning to engage in trade with Asian countries, an LTD in Hong Kong is a highly recommendable choice.
- Ireland. This is a perfect country where you can establish a Limited Partnership. It offers wide opportunities for investment and low taxes.
- Isle of Man. This is an excellent jurisdiction for those who want to own private aircraft or ships. You can form an LTD here and take advantage of zero taxes and the maximum possible property and capital protection.
- Liechtenstein. This is a jurisdiction with a very high reputation in the business world where we recommend setting up an AG Company. It offers a high degree of privacy and allows you to create an impenetrable barrier to protect your assets.
- Malta. This is an optimal jurisdiction for those who want to set up a holding company and protect intellectual property rights.
- Mauritius. Establish GBC-I here to engage in international trade, carry out investment activities, and store capital.
- Nevis. This is a destination that will offer the highest degree of confidentiality in banking, exports, and insurance where we recommend forming a resident LLC or a non-resident IBC.
- Panama. Use this remarkable destination for the import and export of products and services, global asset protection, and establishment of a non-resident SA company.
Interested in more information? Please follow the above link for more details or book a free session with an expert for a customized solution. Keep your assets as safe as possible!