Would you like to get ultimate asset protection? One of the best instruments you can use for this purpose is an offshore trust. If it conjures up images of illegal goings-on, we will do our best to dispel this myth in the post and show that this is a convenient tool that can be used on an absolutely legal basis by nationals of different countries. If you are looking for bulletproof asset protection and studying different opportunities, we recommend a trusted portal where you can read a more detailed article on the best countries for establishing offshore trusts and explore the whole section devoted to asset protection.
Are Trusts Lawful?
Yes, they are! The foundations for trust establishment are laid down in the common law and the constitutional right, and you can create a trust for yourself and your family in any country. On the other hand, you may come across lawyers and accountants who say that trusts are out of the law. Why is it?
First of all, they may have no experience in setting up a trust in a due manner. Second, they may be uninterested in the client who wishes to take his or her capital abroad.
If you read the yellow press, you may think that offshore trust structures are only created by scoundrels, money launderers, tax evaders, or drug lords. Of course, this is not true as law-abiding people who set up trusts will not shout about that everywhere!
What is more, governments naturally want the citizens of their country to keep their assets at home for tax and legal purposes. This is another reason why trusts may be mentioned as something bad used by criminals only.
Offshore trusts will give you more benefits than similar domestic structures, but they cannot solve any financial problems, of course. What is more, you will still have to pay the taxes in your country despite the claims of many speakers at offshore conferences to the contrary.
If you hear a professional say that a trust will help you pay no taxes, you’d better stay away from using his or her services. A trust is not a tool for tax evasion. However, trusts will protect your property against being distributed as the government wants it (especially when it comes to inheritance), and you will be able to distribute it in the way you want to. What is more, your assets will be protected from unscrupulous officials and creditors.
What Can an Offshore Trust Give You?
Here are the main takeaways of an offshore trust:
- It can set considerable barriers to lawyers who will be after your possessions.
- It will strengthen your negotiating position with a third-party lender if pressure is put on you.
- If you combine a trust with an insurance product and/or offshore corporation, you will make it possible to defer personal income tax payments or international business performance.
- You will be able to take advantage of interesting financial products and services across the globe and pay a competitive price for them.
- You will get access to 70% of international investments that are closed to other investors, such as foreign equities and bonds, mutual funds, or hedge funds.
If you want your assets to be managed by a bank based in New York, London, Sydney, or Chicago, you should be prepared to face the fact that the lowest-paid consultant in these destinations earns about 250,000 US dollars a year. Why should you pay a fortune if you can do with a much lower amount using the services of an offshore trust company that will be integrated into your business and will not make any unfair profit at your expense?
Some managers will work for you by charging a percentage of the profit they bring. In this case, a trust is an efficient undertaking that has very little difference from a production company located anywhere in the world.
You think of your needs and pay for the services you consider fit. Do you need a financial planner? This is a top-class service, and you may opt for it or do without it. Do you need nothing more than a basic package of banking services? In this case, you will simply choose the one provided at competitive rates if we compare it to global trends. Do you want to hire a world-class expert to manage your trust, say, George Soros? You can do that despite the exorbitant fee you will have to pay, and the result is sure to surpass your expectations! You only pay for what you need.
Why set up a trust rather than address a financial holding or a major bank to manage your assets? The matter is that these organizations will make you pay for different legal and investment services that you don’t need – they are simply included in the service package. And if you have a trust of your own, you will satisfy your needs related to capital multiplication, transfer, and protection without having to pay for the services you don’t need.
An offshore trust is actually a combination of the best legal framework focused on asset protection and cost-effective services. It also gives you access to diversified investment opportunities globally, helping you to support your heirs. With that in mind, the choice is obvious: you have your aspirations, and you have an instrument that will ensure their achievement.
If you want to know which destinations are best for trust establishment, we would mention the Cayman Islands, Nevis, and the Cook Islands. These are the most popular jurisdictions, but they are not the only ones available, of course. If you have another country in mind or you want to get a free recommendation tailored to your particular situation, you can follow the above link and book a no-fee session with an expert. The best advice is the one customized to meet your needs.
What is the main secret of a trust? Well, it lies in the fact that you formally cease to be the owner of your assets as they are now managed by the trustee. As a result, no one can take away from you something that does not belong to you! We wish you ultimate safety for your wealth.
