Choosing how to protect your funds can be a complicated and personal decision. Let’s say you have over $250,000 in assets you’d like to keep safe; there are a number of strategies available to you.
People who have more than $250,000 in assets should seek the guidance of a business attorney and/or a certified public accountant who is well versed in international tax law and other foreign regulatory matters.
International Business Companies, or IBCs, are corporate structures. They can be used for any kind of business, including investment businesses for passive investments or an active business that involves a trade, profession or service.
Using foreign currencies to protect your assets has long been a favorite option of investors. Wealthy individuals use this diversification tactic to protect their properties from the possible value fluctuations of the U.S. dollar. While there's no magic percentage or ideal currency to invest in, there are definitely a few basic ideas that you can adhere to that make holding foreign currency a bit more sound.
Have you ever wanted to fold up a bar of gold like a piece of paper and put it in your pocket or file it away for a rainy day? While foldable gold isn't exactly that simple, the basic concept is remarkably similar as a means for asset protection. Foldable gold provides an easy way to store, hold and transport gold without having to carry around heavy metals.
When Facebook co-founder Eduardo Saverin announced in 2011 his intention to renounce his United States citizenship, the financial news media speculated on the young Brazilian-born entrepreneur's decision and its potential effect on taxation of his $2.2 billion net worth.
One of the most important aspects of accumulating significant wealth is the protection of your assets. Many wealthy families today prefer to have complete control over their financial affairs. If your portfolio is worth over $10 million, a foreign family office may be the best strategy for you.
Family foundations are legal structures found in civil law that can be used for the purpose of generational wealth preservation and asset protection. They are not part of the common law system although they share some similarity with dynasty trusts in the United States. These asset-holding, legal entities differ from common law trusts in the sense that they offer greater flexibility in terms of structure and function.
While some individuals may believe that investing in foreign real estate is a strategy that only the wealthiest members of society can afford, this belief no longer rings true in the increasingly globalized world. Foreign real estate is available at various price points, making it accessible for many people no matter what their net worth is. Investing in real estate abroad can serve several practical purposes as well as serve as an important way to protect one's assets.
Individuals who are looking for an effective strategy that utilizes international law for asset protection may want to consider acquiring a foreign residency. Taking this step can provide many benefits.
As an asset-protection lawyer, my focus is on protecting what I have before I worry about growing my assets. As Sun Tsu said 2,500 years ago in his book The Art of War, the successful warrior works to make defeat impossible prior to entering into battle. From there, victory is assured.
Asset-protection planning works the same way. Personally, I love reading all the Stansberry & Associates editors and their unique concepts for making money and growing wealth. But I want to make sure I can't lose my money through forfeiture, seizure, litigation, divorce, or the myriad other threats that may attack my clients' wealth.
So the first thing I recommend is establishing an "international asset-protection trust."
There are different strategies that apply in asset protection depending on the amount of money you have in your portfolio. For instance, let’s say an investor has under $250,000 in assets and would like to protect it. One of the questions they tend to ask is whether they should add precious metals to his asset portfolio. The answer is absolutely.
Fiscal Cliff Averted: Deficit Projected However to Rise by Another $4 Trillion Over 10 Years - Part Two
For people living and working abroad, the foreign earned income exclusion (FEIE) is also maintained and increases with inflation to over $97,600. The tax brackets however do not take into account the FEIE, so for folks earning more than the exemption amount, they will see a significant incremental increase in their overall tax bill as they go from no tax into a tax bracket of someone earning over $97,600. Nevertheless, the continued existence of the FEIC may encourage more and more self employed folks, who through the use of technology to live and work outside the US.
The House of Representatives agreed at 11 PM on January 1, (mostly along partisan lines with 85 Republicans voting in favor and 16 Democrats against) to adopt without change the Senate bill passed the day before to raise taxes on America's wealthiest taxpayers in 2013. The bill passed the House with a vote of 256-171.
So, for folks with estates of over $1 million, consider gifting much or all of your wealth to an international asset protection trust. Such a transfer will not affect your future income tax, BUT it will affect your future estate tax immensely. Your assets will stay intact for your children and grandchildren rather than being destroyed under a crushing 55 percent estate tax.
So, if you are a single person with a net worth of $1.1 million and you die next year, your estate will owe $55,000. If you have $2 million, your estate will owe $550,000. If you have $3 million, your estate will pay $1.1 million. If you have $4 million, your estate tax bill will be $1.65 million and if your assets are $5 million, your estate will pay $2.2 million. In all of these cases, if the proper planning and transfers were made to a trust prior to December 31, 2012, the applicable tax rate would be zero. That is right, ZER0!
In Tuesday's article, I talked about the Bush Era Tax Cuts and how they were phased out. Today I'm going to continue that discussion and further talk about those tax cuts and what it means to your asset protection plan.
Ten years ago President George W. Bush came just one vote in the Senate from ending the dreaded estate tax once and for all. In fact he had 59 Senators who favored his tax cuts and were willing to vote for them. The cuts included a phase out of the estate tax in 2010.
Possibly the most attractive feature of the new law is the low financial threshold that you must meet to qualify. In many other countries, you have to make a significant financial commitment before you can obtain citizenship, permanent residence, or another status giving you the right to live there permanently. Preconditions range from making large investments or buying expensive homes to putting hundreds of thousands of dollars into long-term CDs or other government financial instruments.
Recently, Belize's new "retiree" legislation became law - offering what is arguably the most attractive incentive programs anywhere for foreign retirees. If you’re looking for tax-free living, put Belize at the top of your list. The law aims to “encourage and promote the inflow of foreign capital into Belize by offering certain tax exemptions and incentives to Qualified Retired Persons...”