Why is Offshore Asset Protection Essential?

With an increase in litigation in the U.S., most small business owners and professionals are seeking ways to protect their assets. These assets include savings and investment accounts and other wealth protection products.

Offshore asset protection is one of the more complex methods for safeguarding your assets. Asset protection packages exist in many different forms. Each serves a particular purpose for a specific reason. For example, it might be necessary for you to protect your assets from the government in order to prevent excessive taxes. You may also want to protect your assets from potential liability from lawsuits. There are many types of protection options you can use when necessary; each method you find necessary to use depends on why you need it in the first place and how much you need. This helps you to assess your risk level.

Some basic types of asset protection include investing in retirement accounts, family limited partnerships, and limited liability companies. The family limited partnerships and limited liability companies work specifically for setting up your business. They also protect your individual assets from any business problems.

A major goal of asset protection planning is to substantially diminish and reduce your financial profile. If you can restructure your assets in such a way so as to place them beyond the reach of future potential creditors, while at the same time maintain a beneficial interest in those assets, you have succeeded in substantially reducing your financial profile. Asset protection ensures that you are far less an attractive target for litigation.

A trust can be an effective tool for developing an asset protection plan. Customers and professionals have used trusts for centuries as a means of conserving and protecting property for trust beneficiaries. However, most domestic trusts do not provide protection from creditors. For example, the typical revocable living trust makes the trustor a lifetime beneficiary. The trustor retains the power to revoke, amend, and invade the principal of the trust. This type of trust provides no protection against the creditors of the trustors. Thus, the offshore asset protection trust is one of the best asset protection tools to date.

It is not always easy to determine the type and level of asset protection that we need. Consulting a qualified and experienced advisor is most conducive when we are not sure of the type of protection required for our situation.

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.