What Everyone Should Know About Offshore Trusts

Financial Investments  Whatever your age, your lifestyle or your net worth, asset preservation is probably one of your major financial objectives. While there are many different ways to preserve and protect your assets both domestically and internationally, offshore trusts are a top choice for many savvy investors. If you are interested in the idea of an offshore trust, learn more about them to determine whether they might be the right investment for your financial future.

What is an Offshore Trust?

A trust is a financial vehicle that you fill with assets of your choosing. Then, the trust is managed by a financial adviser that you select. This adviser follows your guidelines and wishes for the assets, but the assets will no longer be in your name or under your immediate, direct and legal control. If you want to establish a trust that offers more privacy, more opportunities and greater security, then it makes sense to do so in an offshore jurisdiction such as Belize.

Why do People Establish Offshore Trusts?

There are a wide variety of reasons that people establish offshore trusts, but a few of the most common include to preserve assets for their loved ones, to begin estate planning, to limit their tax liability and to prevent assets from being seized or frozen. By placing assets into an offshore trust, you can earmark them for certain occasions, people or organizations.

You might place liquid assets into an offshore trust so that your spouse is cared for after your death, so that your grandchildren have access to college tuition money or so that your favorite charity receives a set amount of money every year in perpetuity. Another popular reason to establish an offshore trust is to reduce your tax liability. Since the assets within the offshore trust are no longer in your name, you will no longer be obligated to pay taxes on their value or on any profits made by the investments held within the trust.

Finally, placing assets in an offshore trust can be a smart way to protect them from legal action. Although no one wants to imagine a court case, a bankruptcy declaration or asset seizure, these things can and do happen. Thankfully, placing assets in a trust will protect them and guarantee the financial future of your loved ones no matter what happens in the years to come.

What Can You Put in an Offshore Trust?

A key question that many investors have is what can be placed within an offshore trust. The contents of an offshore trust can be as diverse as you want them to be, and almost anything of value can become part of the trust. Many investors choose to include liquid assets like cash as well as stocks and bonds. You can also include titles of real estate holdings or even valuables like antiques, coins and jewelry.

Learning more about offshore trusts may help you determine whether they could be right for your financial situation. Once established, an offshore trust will certainly deliver peace of mind for years to come.

Find out more about how Caye Bank can help you with smart investments and asset protection.


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.