Offshore asset protection trusts are not only for the rich. These trusts are safe, secure means of protecting your assets and are available in a number of customized packages that can protect even the smallest of assets.
Three major jurisdictions that favor offshore trusts are the Cook Islands, the Isle of Man, and the island of Nevis.
Why Offshore Trusts?
The most important benefit to an offshore trust is asset protection. Offshore trusts in various jurisdictions like the Cook Islands, Nevis, and Isle of Man provide many benefits to trust holder. For instance, these jurisdictions do not recognize judgments from foreign countries, such as the United States, that are attached to claims from creditors or in litigation.
Offshore asset protection trusts also provide additional benefits such as trustee licensing and offshore banking. Trustees of all offshore trusts go through rigorous background and security checks prior to being granted a license. Trustees are also bonded so that the funds he/she manages are insured. On the other hand, offshore banking provides several banking and mobility benefits to accessing your money internationally.
Asset protection plans are developed to protect you and your assets. Always consult a professional’s advice on assisting you to develop an ideal plan that will protect your assets.
Offshore Private Banks: Providing the Best Edge
U.S. and offshore government statutes on financial banking define offshore private banks as entities established outside the jurisdiction of the owner’s residence and/or home country. In addition, industry professionals typically refer to offshore financial institutions as private international banks, offshore banks, or captive banks, a wholly owned subsidiary operating for the benefit of one legal entity such as a firm.
Offshore banks are not bound by the federal or state regulatory laws of another country, but they are responsible collectively for complying with standards established by local jurisdictions set up to license and regulate the companies. There are generally two different types of offshore banks.
Class A Banks
A Class A bank is categorized as a standard retail banking operation. This type of bank can accept public deposits for both private and business accounts. This is the most common type of offshore banking in the United States. The license for this kind of banking is held by major companies. The physical locations of the institutions have the customary vault, tellers, and ATM machines. Examples of this type of bank include Credit Suisse, Barclays, and Royal Bank of Canada.
Class B Banks
This kind of offshore private bank is usually restricted from doing business with the citizens of the host country. It does not maintain a retail location, or “street presence.” A representative, typically an attorney, posts a brass plate on the outside of the office building and conducts all transactions through the communication mediums of fax, telephone, and U.S. postal mail.
Class B banks are able to issue virtually all of the same financial instruments as that of a Class A bank, but they are unable to provide services to citizens of the host country. These types of banks can advertise by utilizing restricted, but compliant standard offshore bulletins.
The Edge Act
The Edge Act Corporation is a federally-chartered U.S. corporation that the government allows to engage in international banking or other financial transactions related to international business. The U.S. government established the authority of the Edge Act in 1919. The International Banking Act of 1978 allows foreign banks to own Edge Act corporations.
For offshore private banking in the U.S., the corporation issues licenses to banking entities that are virtually identical to the classic definition of an offshore bank. Banking entities include Edge Corporations and International Banking Facilities, which are shell banking units that offer ownership with the advantages of being a bank with reduced regulation and lower reserve requirements. The customers of these types of offshore banks can use these facilities to gain entry into the U.S.
International Banking Facilities are institutions in the United States that allow financial depositories, or banks, to provide services to foreign residents and institutions free of some Federal Reserve requirements and state and local income taxation compliance.
Harbor Financial Services (HFS)
Harbor Financial Services is a professional company that provides offshore financial advice and investment services to its clients. HFS recommends offshore products and services to suit any personal and/or business need. The company has helped clients find solutions to meet their long-term financial needs. HFS has the experience and the expertise to create the best offshore package for you. Visit http://www.hfsoffshore.com for more information about the company’s products and services.
Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.