Offshore Asset Protection is for Everybody Who has Something to Protect

When you think of offshore asset protection, you might picture a multi-million-dollar corporation or famous person hiding their money in an offshore account, or if you’re a movie buff, you’re probably picturing the mafia or someone hiding the gains from a big bank heist. But the truth is, it’s not just for the extremely wealthy: protecting assets in an offshore account is for everybody who has something to protect.

In this post, we’ll look at why offshore asset protection is not just valuable to the Bill Gates or Mark Zuckerberg’s of the world, and we’ll look at common ways to protect assets. We end with some advice on how to get a trust or other protection means legally set up.

Why Offshore Asset Protection is for Everybody With Something to Protect

Even if you’re not wealthy, you still might need offshore asset protection. For example, if you have a small investment, what would happen if someone sued you and won? The Plaintiff would get a judgment against you, so they could legally go after your asset (your investment). But if you protect your asset, it would be safe from their grasp—or at least hard to get to.

Need more reasons for why offshore asset protection is important for non-wealthy people? Think identity theft, frivolous lawsuits, and financial crimes. If your assets are in the name of a corporation or an identification number (not a social security number), it adds another layer of protection—and with dips in the economy, protecting and preserving assets is important for everyone who has an asset.

Besides law suits, there are other reasons why you might need offshore asset protection, some of which are listed below:

• You’re worried about your businesses financial viability.

• You’re in a high-risk profession, such as a doctor or lawyer.

• You’re a guarantor or a debtor.

• You’ll soon receive an inheritance, income from an investment, business success, or equity from the sale of a business.

• Your home’s value is lower than your mortgage amount.

• Excessive business or credit card debt.

Setting up a trust is a common way to protect assets. Now, we’ll look at setting up a trust for offshore asset protection.

The added layer of protection provided by offshore asset protection is often done by way of a trust. The process is simple – the asset owner takes their name off the asset and transfers the funds to an international trust. The asset owner then appoints a trustee, beneficiaries, and settlors. They also keep control of the assets in the trust for the benefit of their named beneficiaries. So, as you can see, you don’t lose the asset by setting up a trust, but you do make it much more secure. The internet has advanced our world in so many ways, but it’s also created new problems, with a major one being privacy. Everybody is in danger of having their privacy invaded online, and hackers continue to find new ways of breaking into computer systems.

Popular Countries for Offshore Asset Protection

There are only a few jurisdictions with laws written to advocate offshore asset protection, and they are:

• Cook Islands

• Isle of Man

• Belize

• Nevis

The above noted countries are safe for offshore asset protection because they have international trust laws and they’re economically and politically stable. When choosing the country, it depends on your preferences (their laws vary) and on which American company you hire to create the trust.

With offshore asset protection, it’s wise to work with an established American company that has a solid history with the country that will be holding the asset.

Since we mentioned how offshore asset protection is used in movies (usually illicitly), it’s important to know what it’s not good for.

What Offshore Asset Protection is NOT:

• A way to avoid a current creditor.

• A way to eliminate or reduce your tax obligations to the IRS.

• An opportunity to hide money. Offshore asset protection isn’t done in secrecy and it doesn’t hide your asset; it just puts up barriers.

The above list is not exhaustive. To find out more about offshore asset protection, you should always speak with a professional. As you can see, its a simple concept, but it’s complicated in how its protection is set up. What’s most important is that, whatever avenue you choose to protect your assets, the papers must be drafted properly and maintained in a safe country.

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