Offshore Trusts 101

Offshore TrustsFor many people, acquiring financial assets is a priority throughout much of their lifetime. However, protecting and maintaining those assets is also integral, so you should give at least as much attention to asset protection as you do to asset acquisition. One of the most effective ways of protecting assets long term is placing them in an offshore trust. Get started with this guide, which can provide the basics on what an offshore trust is, what its benefits include, who they are best suited for and how you can set up your own offshore trust through an international bank.

The Offshore Trust: What Is It?

An offshore trust is a kind of international account where you can place assets for protection and safekeeping. Unlike a typical bank account, where you can only really protect money, a trust can be used to safeguard things as diverse as real estate, jewelry or even shares in a company.

However, you can’t simply take these assets out of the trust when you need them. An offshore trust is designed to hold assets until a specific date or event in the future. That could mean safeguarding cash until your grandchild is ready to attend college or protecting real estate investments until your spouse needs them in the future.

The Offshore Trust: What Are the Benefits?

There are three major benefits of investing in an offshore trust, and they include the following: peace of mind, reduced taxation and diversification. Peace of mind is brought about because you know that the assets are secure and free from government intervention.

Reduced taxation is due to both the offshore nature of the trust and the fact that you don’t have immediate access to the assets within, so you will be spared the burden of being taxed on their value. Finally, an offshore trust can simply be an additional way to diversify your portfolio and make your financial status less vulnerable.

The Offshore Trust: Who Needs One?

Lots of different people can benefit from opening up an offshore trust. If you are starting to think about estate planning, and you are eager to financially care for your family and loved ones in the years ahead, then an offshore trust is the ideal way to do so.

Another group that should take advantage of the offshore trust is those who are concerned about the stability of their domestic government and/or banking system at home.

The Offshore Trust: How Do You Get Started?

If you are ready to take the next step and investigate the offshore trust and how it can benefit you personally, then it is time to consider the location. Remember that each nation has different rates for banking and different policies regarding financial privacy, but Belize is routinely ranked as one of the best offshore locations thanks to limited or even nonexistent taxes for many foreign investors and bank account holders. Once you’ve picked a destination, start choosing the assets you would most like to protect.

An offshore trust can be a savvy way to protect your assets today as well as years from now. Learn more about how to open up your own trust in Belize.


About this author

Caye International Bank Limited (CIBL) was granted an Unrestricted "A" Class International Banking License on September 29th, 2003 by the Central Bank of Belize and is regulated by the Central Bank of Belize which set the standards for liquidity and capital adequacy.