How Offshore Trusts Preserve Assets

Wealth ProtectionAn offshore trust is a kind of account where you can place assets in a secure location and then earmark them for future recipients or occasions. Once assets are placed within a trust, they are no longer in your technical possessions, which means that you can’t be taxed on their value.

However, you can still play a role in overseeing the management of the trust, and an offshore trust can be integral if you want to establish a plan to financially care for family members, friends or even charitable organizations in the future.

Find out exactly how offshore trusts in jurisdictions like Belize can help to better protect and preserve your hard-earned assets.

Protects Assets From Seizure

The first way that an offshore trust can help you to preserve your assets is by ensuring that they are no longer eligible for seizure. If, for example, you or your business were to go bankrupt, the assets held within your offshore trust would not be included in the settlement. Alternatively, if you were sued because of an accident or a legal issue, those assets within your already established offshore trust could not be touched.

Finally, some individuals may be concerned about the government freezing assets during an investigation of any kind or even an economically unstable time. However, if you already have some assets stored within an offshore trust, those would be exempt from any account freezes. It is important to note that this is not a way to get around the law. Rather, it is a completely legal way to create a safety net for the future and for your loved ones.

Guarantees Financial Safety for Dependents

One of the best things about establishing an offshore trust is the fact that you can earmark the funds for whatever you deem most appropriate. You might, for example, decide to set aside a piece of family real estate for your daughter to inherit at a set age. Or, you could choose to reserve a specific amount of cash for your grandson to have access to at 18, with the provision that it can only go towards a college education.

You can set money aside at certain intervals for a charity near and dear to your heart, or you can guarantee that your spouse receives a stipend each month for the rest of their life. Ultimately, setting up an offshore trust can grant you peace of mind.

Prevents Portfolio Erosion Through Taxes

Another key way that an offshore trust helps preserve your assets is by limiting tax erosion. Virtually anything can be stored in a trust, and you might place within your offshore trust stocks, investments, precious metals, cash or real estate. If a commercial property is placed in your trust, as well as the income it generates, you won’t be taxed on that income. Investments that do well won’t be subject to high capital gains taxes.

While a lot of this depends on the jurisdiction of your trust, Belize is one example of a destination where foreign investors can enjoy minimal or even nonexistent taxation.

In these ways and many others, the establishment of an offshore trust can be a key way to preserve your assets.

Contact us today and let us help you find better ways to protect your assets.

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.