The Truth Behind Common Offshore Trust Myths
Offshore 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.