Benefits of Establishing an Offshore Trust as a Retiree
As you get closer to retirement, or even if you’re already officially a retiree, it’s natural to start giving more thought to your finances, your legacy and the security of your dependents. Whether you have a few thousand dollars to set aside or you want to protect millions for your loved ones, offshore trusts can be the right vehicle to make it happen.
An offshore trust is a collection of your chosen assets that are managed by a trustee or financial adviser appointed by you, the benefactor. Find out why retirees can benefit so greatly through the establishment of an offshore trust in Belize.
Your Assets are Protected Against Legal Proceedings
One of the main reasons individuals opt to place assets within an offshore trust is because it can be a level of protection against legal proceedings. If, for example, your business went bankrupt, or if you were taken to court for personal reasons, anything held within your offshore trust can’t be touched.
Although no one wants to imagine these kinds of legal proceedings, they do happen, and it makes sense to be protected against harsh verdicts whenever possible.
Your Taxes Can be Reduced
In retirement, income is typically limited. Whether you’re drawing a pension or Social Security, you might need to stick to a set budget in order to afford the quality of life you’re used to during the coming decades. Unfortunately, taxes don’t stop just because you aren’t working anymore.
By establishing an offshore trust in a place like Belize, the assets you hold within the trust won’t necessarily qualify for capital gains taxation. This is a completely legal financial move that can help you cut costs when it comes to annual taxation.
Your Holdings Will be Better Diversified
Whatever your age, diversification of assets is an integral part of any financial strategy. It becomes even more important as you reach retirement, since you may no longer have the potential to bring in a regular salary should your assets lose their value.
One of the ways to diversify any portfolio is to establish an offshore trust. This trust offers low risk and plenty of rewards, and it can contain assets ranging from cash to antiques to real estate.
No matter what happens in any industry or to the cash stored in your bank accounts, you can have peace of mind that your trust is secure and the assets within are safely preserved.
You Can Prioritize Assets for Dependents
One of the biggest reasons retirees begin looking at offshore trusts is so they can set aside specific funds or assets for their dependents. While a retiree’s financial plan may involve caring for their immediate needs, it also typically focuses on how to create a legacy.
That might be by paying for the college education of your grandchildren, or it might be making a substantial donation to a special charity. With an offshore trust, you can earmark cash or assets for certain relatives or friends at specific points in time, ensuring they have financial security even after you’re gone.
While an offshore trust can be advantageous for anyone, retirees can especially benefit from the many advantages of an offshore trust.