Tags: Investors | Protect | Assets | offshore

Investors Using Offshore Trusts and Foundations to Protect Assets

By Denis Kleinfeld
Monday, 18 Jun 2012 10:44 AM Current | Bio | Archive

Global wealth is on the rise and increasingly mobile.

Investors in the United States are flocking to,  or are being impacted by, foreign money-making opportunities.

Foreign investors are seeking the United States as a safe tax haven as they flee from their own home-country issues.

Investment planning, related tax planning, corporate-and-family wealth planning are all under the umbrella of asset-protection planning.

People everywhere are beginning to realize — if they hadn't before — that these crossborders are similar to a multidimensional chess game. Think Star Trek.

Only in this game, if you lose, then there may be no second chance.

Governmental policies in the United States are increasingly having the effect of trapping people and their wealth within U.S. borders.

The congressional objective is to make sure the sheep (that is, the taxpayers) cannot leave the holding pens (the borders) to avoid being shorn (that is, paying the exit tax).

In the U.S., it is reasonable to say that the ability of the government to tax or seize property by forfeiture shows little, if any, restraint. Quite the opposite in fact.

Other countries are developing the same sort of regime if they haven't already done so. And even more countries are in such economic, political and/or religious turmoil that the resulting chaos of the risk volatility pushes everybody with anything valuable to get it — and themselves — out of that country.

The primary international planning vehicles being used worldwide to protect assets and enable investment by lowering the risk exposures to tax or confiscation is in common-law trust or through the civil-law foundation.

Offshore asset protection trusts are intended to protect the wealth they hold from financial and human being created risks exposures.

There is increasingly a push to have global tax reporting. Some sort of supranational organization will dictate to all other countries and their citizens every detail of their lives.

So far, the United Nations and the OECD are the front runners to dictate global policy. Sovereign national borders will be irrelevant in this New World Order.

For protecting your ability to survive in these chaotic times, establishing a foreign wealth protection trust or foundation located in a suitable foreign financial center would be a good start.

With proper tax compliant planning using trusts or foundations you might even achieve a level of income tax deferral or, even, estate tax avoidance.





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