Most people have two primary objectives for the portfolios. The first is to increase profits and returns on investments, and the second is to guarantee security for assets. If you fall into the second category, or a combination of both categories, then you’ll want to investigate all of the options that can lead to a more secure, lasting financial future.
Offshore trusts can provide peace of mind for you and for your loved ones in all of the following ways.
Limit Current and Future Tax Liability
In many cases, placing assets into an offshore trust can limit your taxation liability. This is particularly true if you gravitate towards trusts in jurisdictions that already offer low or nonexistent tax rates for foreign investors. Belize, for instance, is a prime example of a destination where holding an offshore trust can reduce your annual tax burden.
Set Aside Assets for Loved Ones and Dependents
One of the main reasons that individuals decide to establish offshore trusts is so that they can securely set aside assets for their loved ones. Few things in life are guaranteed, so financially providing for dependents in one way to help them enjoy security can give you peace of mind.
An offshore trust can be an integral part of your estate planning, and you can earmark certain assets or cash for specific individuals, dates or life events. This means you can rest assured that your children will have money for college tuition or your grandchildren will have a fund to help them pay for a wedding or a down payment on their first house.
If all of your holdings are currently domestic, you could be doing yourself a major disservice. That’s because the most secure portfolios are those that offer geographic diversity. Even trusts, which are more secure to begin with, might not be as stable as possible if they are held in the same country or jurisdiction as all your other assets.
Opting for an offshore trust can be key in order to maximize your financial diversification and minimize your risk.
Prevent Seizure or Freezing of Legal Assets
Even if you’re careful to abide by all laws, it is still possible to have assets frozen or even seized as a result of a civil or criminal lawsuit. This can be devastating, even it is temporary until a court case proves innocence. While no one likes to dwell on the potential for these kinds of actions, it is still important to prepare for their possibility. Keeping assets in an offshore trusts helps to legally guard and protect the things you have worked hard to earn.
Safely Store a Range of Assets
One of the most appealing things about an offshore trust is that it can store a wide range of assets. Contrary to popular belief, an offshore trust can contain things like real estate, antiques or cash in addition to more traditional items like cash, stocks and bonds.
If your goal is to better secure your assets, to financially provide for your loved ones and to enjoy greater peace of mind, then an obvious investment vehicle is the offshore trust.