If you have worked hard to accumulate assets, then it should be of utmost importance to preserve and protect those assets. For many, the best way to avoid government intervention and to enjoy financial privacy is through offshore banking.
However, you may struggle to understand how offshore banking and investing relates to U.S. law, and it is vital that you avoid breaking any important tax codes or banking laws in the process. Thankfully, there are three key ways that you can protect your assets and still comply with U.S. law.
However, it is integral that you keep in mind that each of these three options still comes with paperwork, study and the likelihood of hiring a financial and accounting expert to help you remain compliant year after year.
Opening an international corporation can be a way for you to protect your assets and avoid some United States taxation in the process. Plus, starting an international business has a number of perks unrelated to tax.
For example, a business started in Central America might have lower operating costs than it would domestically, it might allow you to break into a new market that was previously unavailable to you and it could even help you to secure residency and eventually citizenship in that country, should that be something that you are interested in.
It is key to understand that not all international corporations started by U.S. citizens are exempt from taxes, and it all depends on your company’s profits, where it spends its money and more.
Arguably the most popular way to protect assets internationally is through a trust. A trust works by transferring ownership of an asset or assets into an account that, technically, does not belong to you. You are able to determine the future of those assets, but you aren’t allowed to be taxed on them since they are not actually yours.
Trusts are an effective way of estate planning for many, as they guarantee that your loved ones and dependents have financial security even when you’re gone.
Another beneficial aspect of international trusts is the fact that they can be opened relatively quickly and immediately allow you to transfer a range of assets including real estate, cash, stocks, bonds and even valuables like art or jewelry.
3. International Insurance or Annuities
A third option to consider if you want to protect your assets abroad while still complying fully with United States law is foreign insurance. As long as you adhere to the Federal rules that currently exist for any type of life or death insurance and annuities, offshore policies and wrappers are certainly an option.
Their benefits include the possibility of payouts in a range of foreign currencies, diversification for your portfolio and the chance to invest in a range of international mutual funds. International insurance is also a low-maintenance way to protect assets, at least on behalf of the account holder.
It is important not be afraid of protecting assets abroad. These three options showcase how you can enjoy the benefits of international asset protection while still complying with U.S. law.