The Truth Behind Common Offshore Trust Myths

Contrary to some myths, offshore trusts are legal, secure, can contain a variety of different types of assets and are beneficial no matter what your net worth may be.
A Sea of Money

A Sea of MoneyOffshore trusts are vehicles in which you can place your assets in order to store them more securely while simultaneously reducing your tax burden. They can be a kind of financial safety net, or they can be a way for you to earmark specific assets for loved ones in the future.

An offshore trust diversifies your assets while giving you peace of mind about the financial security of your loved ones, making them a savvy choice for investors from around the world. Unfortunately, there are a number of myths circulating about offshore trust.

Debunk them all and determine whether an offshore trust in Belize could be the right fit for you.

Myth #1: Offshore Trusts are Only Suitable for Multimillionaires

This is a consistent myth, but that doesn’t make it true. Do multimillionaires and even billionaires use offshore trusts? Absolutely. However, that doesn’t mean that those with less wealth can’t.

Whether you have a few thousand dollars to set aside for your spouse to use in the future or a few million to donate to a charitable organization as part of your estate planning, offshore trusts can be an effective tool.

Myth #2: An Offshore Trust is Illegal

This is another myth that simply has no basis in fact. An offshore trust is a way of protecting yourself and your financial assets, and there is nothing illegal about that according to the laws of the United States or any other country across the globe. However, there may be some gray areas if you are already involved in court proceedings for things like bankruptcy or divorce and then establish an offshore trust.

So-called “eleventh hour” trusts may be technically following the letter of the law but can be frowned upon by courts. This simply makes it all the more important to establish an offshore trust long before it is ever needed as a way to preserve and protect the assets you value most.

Myth #3: Offshore Trusts are Riskier Than Domestic Trusts

While no investment is 100 percent safe, offshore trusts are one of the most secure options out there. While you won’t be able to readily access the assets that are placed within the trust after establishing it, you can be assured that the assets within can be used exactly as you outlined.

Whether you want to provide for loved ones or pay for the college education of future grandchildren, offshore trusts are a secure option that carry no more risk than a similarly set-up domestic trust in your home country.

Myth #4: Your Assets Aren’t Conducive to Offshore Trust Storage

Thankfully, this is another myth that can be proven false immediately. A worry that many investors have is that their assets aren’t the right type for an offshore trust. Believe it or not, assets don’t have to be liquid to be stored in a trust. Just some of the assets that can be placed into an offshore trust include antiques, vintage jewelry, cars, bonds, stocks, real estate and cash.

Debunking these myths can help you understand the truth behind the popularity of offshore trusts, and it may just inspire you to create your own as a way to protect and preserve your valued assets.

Contact Caye Bank for more information about the financial services that can help you mange your money.



More Posts

Belize Offers Anonymity, Security and Confidentiality in Offshore Banking

Many investors choose Ambergris Caye for offshore banking and asset protection because Belize is primarily an English-speaking country, the tax benefits are favorable, and the exchange rate is two Belize dollars to one U.S. dollar. The country is also easy to reach by two-hour flight, by 36-hour drive from Houston or by sailing on a yacht or catamaran. Belize is one of the leading countries for offshore banking in northern Central America.

Read More »

Understanding the Benefits of International Investment

In recent years, the stigma associated with international banking and investing is long gone. Today, investors with varied amounts of money are taking advantage of international investment options in places like Belize, and they are enjoying the many benefits. International investors will appreciate the stability of international banks, the impressive international interest rates that add to the growth of wealth, the currency flexibility for frequent travelers and the significantly lower capital gains tax rates.

Read More »

Send Us A Message