Articles
Newsletter
| Offshore Asset Protection Planning and Strategy |
 |
 |
 |
| Written by Raymond Contadler |
| Wednesday, 13 August 2008 17:17 |
|
There seems to be a misconception about offshore asset protection in that its legality seems to be questioned. Some people even ask if the concept is sleazy. Despite all the myths that surround the topic, it is a viable way to protect your assets should you ever be facing litigation. For a few years towards the end of the 1990's, offshore asset protection was synonymous with offshore planning. Offshore banks, mutual funds, and trust funds were sprouting up like weeds, and offshore tax/debtor havens were booming. In offshore asset protection, assets are registered in a foreign jurisdiction where they are protected from being sold off. Since they are registered offshore in another jurisdiction, your assets are protected from someone else laying claim to them and selling them. Because of the costs involved with a law suit in a foreign jurisdiction, the words offshore asset protection causes a lot of creditors to get discouraged. When a business or individual no longer owns those assets, then creditors cannot reach those assets and take them. This is the goal of an asset protection strategy. Asset protection planning strategies remove legal titles from business or personal assets. However, the business or the individual the benefits of the assets. What is the purpose of asset protection? Typically, the plaintiff gets favored over the defendant in most instances in US jurisdictions. All of the property that you have worked on accumulating over the years may be lost if you lose the case. Those assets can be protected and saved if you use offshore asset protection methods. Considering a well-structured asset protection strategy in advance is always the best course of action. Your savings are ultimately increased when an effective strategy results in sufficient tax reductions. You should develop an asset protection strategy and then implement it when your business is in its initially development stages so that by the time you are up and running, your asset protection plan is in place. One of the most sophisticated strategies there is involves the transferring of the family nest egg or your business assets (or both) to either a domestic or offshore trust. In addition to this, they are considerably easy to set up and maintain. The client and family members are listed as the beneficiaries in this case. Another efficient asset protection strategy that is often used is the "family limited partnership" wherein control and management of the assets remains in the hands of the client. There are programs that are necessary to the strategy that warrant careful review. These are: contract procedures, employment contracts and hire procedures. Since the assets, goals, and opportunities of each business, family, or individual are unique, it's important to remember that what works for one may not be an effective strategy for the other. Always bear in mind that asset protection strategies will vary based on annual net income, age, country of residence and citizenship, and situation. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
Stumble It!
Members : 1254
Content : 2297
Web Links : 1
Content View Hits : 310076
Content : 2297
Web Links : 1
Content View Hits : 310076