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Offshore Asset Protection Trusts for US Citizens
When it comes to discussing offshore anything and US citizens
- from offshore trusts to investments, from offshore banking to
company incorporation - it's important to note the following
facts: -
- US citizens are taxed on their worldwide income. This
includes income from interest, dividends and gains whether
onshore or offshore.
- The US government allows money and assets to be moved
offshore freely; however it requires full disclosure relating to
the amount of money or assets moved and when they are moved.
- The US government has task forces committed to the
prevention of money laundering and tax evasion.
- The US government makes it clear that US citizens must
comply with all reporting and taxation demands.
So, does this effectively render the offshore world
inaccessible or at least useless for US citizens?
No, far from it in fact!
The utilization of offshore trusts and bank accounts can be an
excellent way for US citizens to legally and securely protect
their assets and themselves from litigation for example.
Offshore trusts offer an individual a fair degree of personal
confidentiality, privacy and asset protection from claimants such
as an ex-spouse or business client for example; and if properly
structured, offshore bank accounts can offer degrees of financial
protection from potential future claims as well.
There are many companies and individuals who claim to be able
to offer US citizens offshore solutions for taxation reduction or
negation purposes. The bottom line is - as stated previously - US
citizens are taxed on worldwide income. Therefore it is at best
unlikely that the services being advertised will apply to a US
citizen and at worst the opportunity will require the US citizen
in question to break the law.
So how can offshore asset protection trusts potentially
benefit US Citizens?
Any form of asset protection trust - whether onshore or
offshore - can be used to protect assets from personal or
professional litigation or creditor attack.
Whether established in an offshore jurisdiction or not, most
assets protected by the given trust for a US citizen can remain
in America. The assets usually remain under the indirect control
of the Settlor (the person establishing the trust) as well.
Such a trust will usually be 'irrevocable' for a set term, and
during that period the settlor will not be a direct beneficiary
of the trust.
Depending on circumstances and best advice, many US asset
protection specialists favor structuring offshore or foreign
trusts in such a way so that they are taxed as domestic grantor
trusts.
If the trust is created properly, any creditor or anyone suing
the settlor will be unable to reach or claim the assets within
the trust.
If the offshore asset protection trust has been structured as
an irrevocable trust for a set term, at the end of the term
provided there is no current or ongoing threat, the assets can be
returned to the control and direct 'ownership' of the
settlor.
Conclusion
When it comes to the utilization of offshore solutions there
are circumstances in which US citizens can benefit from properly
structured offshore solutions.
At all times US citizens must be aware that it is their legal
duty to comply with American taxation and reporting
requirements.
The purpose of effective offshore asset protection planning is
the negation of any economic incentive to sue.
Rhiannon Williamson is an experienced publisher who has
produced articles for leading travel and tourism guides and
financial magazines. Her specialist knowledge about both travel
and finance gives her site Shelter Offshore the unique
ability to literally cover every single aspect of moving &
living abroad - including the often less discussed offshore tax
advantages that can be available when leaving our homeland. Check
out her website to find out how you can escape from the rat race,
relocate overseas, and profit from your move!
MORE RESOURCES:
Father paved way for Street's debutDenver Post, CO - Nov 17, 2008... and Nixon Coming" — on Monday, at the Austin, Texas, offices of The James Street Group, a financial firm that specializes in structured settlements. ... |
Structured-Settlements - Google News
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