Asset Protection
Asset protection is the fundamental purpose behind the use
of 'offshore' for many people; the use of trusts and related structures
in well-regulated offshore jurisdictions remains the safest way of protecting
your assets against the tax-man, creditors and inheritance taxes.
This financial management strategy will be of particular interest to those
working in professions where there is a high risk of litigation, for example
doctors, lawyers, business owners, and financial planners, to name but
a few.
And it isn't just professionals that are at risk from this type of thing.
Anyone with substantial net worth could find themselves liable in a frivolous
lawsuit, under attack from an ex-spouse or the tax-man, for instance through
inheritance tax.
Asset protection strategies basically work by making the assets of an
individual unavailable, or difficult to recover, (and hence potentially
more unattractive) in the event of legal proceedings being taken against
them by employees, clients, patients, litigious family members or other
creditors.
Protection of assets can take a number of forms, and while there are
many domestic alternatives, including living trusts, limited liability
partnerships and companies, and family limited partnerships, offshore
vehicles are usually more effective for this purpose. The trust is the
lynch-pin of offshore asset protection; although offshore bank accounts
on their own can provide enhanced privacy and confidentiality, they are
usually an integral part of an asset protection strategy.
There is a great deal of helpful material on asset protection
in investorsoffshore, and for that matter on our other sites as well,
so here are some links to relevant parts of our own and other sites, listed
below under various subject headings:
Offshore Asset Protection
A
Guide To Offshore Asset Protection our extensive description of how,
why and when to use asset protection strategies.
Trusts
The Lowtax.net
jurisdiction section has detailed descriptions of the trusts regime and
of the corporate vehicles available in each of more than 40 key offshore
jurisdictions.
The
LowtaxPro Offshore Trusts Report: highly detailed information on investment
funds in the top 18 offshore fund jurisdictions. This is a paid-for report,
but you can see a contents listing through this link.
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