Which Offshore Incorporation
Asset protection strategies layer more than one entity. The offshore incorporation, often includes an onshore counterpart, a corporation or LLC. Again, there's no one-size fits all.
Commonly, when he hear Asset Protection, we think "trusts." However, there's a lot of misinformation about trusts. For example, many teach that trusts are not the most useful offshore incorporation entities. Why? Because they do not protect assets against lawsuits or taxation. They simply allow for the avoidance of probate when passing property, personal or real estate, onto your heirs.
True, if you are talking about revocable living trusts that are popular in the US. A basic trust is a contract through which an individual or a corporation transfers the property to one or more trustees, who manage it on behalf of the beneficiaries. The person or corporation, who sets up the trust, is called the grantor, creator or settlor. Not true, if you understand the concepts involving offshore trusts. It benefits you to learn these before making any decision, yes or no about trusts. It could wind up being your best fit. The most informative book I've found on trusts is one entitled Trusting the Trustee. . .? Personally, I had heard too many horror stores of people putting their money and assets in an offshore trust only to find the "trustee" wasn't to be trusted and their money disappeared. I've also heard of countries with a strict privacy policy, such as Latvia, suddenly chance their policy after a friendly visit from President George W. Bush. The Latvian banks sent their clients letters that their affairs were no longer private and their assets were frozen until they complied with there new non-private policies.
Most Asset protection providers offer an IBC in combination with other entities. You set up the IBC in a tax friendly jurisdiction where you are not taxed on income produced outside the jurisdiction and where privacy reigns.
As an example, an offshore IBC can own an onshore LLC or corporation. Most onshore asset protection providers offer this kind of service. However you must educate yourself to make sure that they have the knowledge to really protect you. See, Education See, Education See the American examples under taxation It can also own a Private Interest Foundation (PIF). Whereas the foundation cannot operate a business, the IBC can. Structuring offshore incorporation as an IBC allows you to manage a business, which you are not the owner of. You can open bank accounts and make investments on behalf of the entity. You'll find many jurisdictions which provide asset protection through offshore incorporation via an IBC. The most commonly known Caribean Islands, Antigua, Anguilla, the British Virgin Islands, the Bahamas, Gibraltar, Dominica and Nevis as well as the countries of Panama, Liechtenstein, Switzerland and Hong Kong.
See Havens.
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