How to protect assets with an offshore scheme

Protecting assets with offshore

The two main elements on which asset protection is built are early planning and confidentiality. It is necessary to calculate in advance all possible risks of confiscation or seizure of savings and property, and take a number of measures to achieve financial security, because it is useless to “hide” assets at the last minute, and in some cases even illegal. Timely preventive measures to protect assets will ensure the desired result and relieve worries about what will happen to savings and property in the event of a sudden death. Measures to protect assets include the alienation of property from the owner (transfer to a trust, fund), the transfer of assets to another jurisdiction (offshore), ensuring the anonymity of asset owners through the use of nominee managers. The set of actions to protect assets includes the creation of rules for the inheritance of property; planning the disposal of retirement savings; prevention of the risk of loss of assets due to wasteful use and others.

Offshore Trusts and Funds as Instruments for Asset Protection

An offshore trust and a private offshore foundation are structures that are ideal for holding and protecting assets, but are not designed for frequent commercial transactions. An offshore trust or offshore private foundation generally has passive income such as rental income, capital appreciation, dividends or new contributions.

If you need an offshore trust or fund to protect assets, but at the same time you want to do business, the ideal solution is to register an offshore company (offshore LLC or offshore IBC) and transfer its shares to a private foundation or offshore trust. Thus, the offshore company will be involved in active activities for profit, and the offshore trust or fund will ensure the protection of the assets of this company. Income or profits of an offshore company are not taxed, and income that accumulates in a trust or foundation account is not subject to confiscation.