Today I’ll show you how to take your U.S. defined-benefit plan offshore in 5 steps. If you want to maximize asset protection and diversify your defined benefit plan offshore, this post is for you. Taking your plan offshore and placing it behind an added layer of security is the best asset protection available.
U.S. persons with offshore accounts have likely heard the news that The Foreign Account Tax Compliance Act or “FATCA” will take full effect on July 1, 2014. While reporting offshore accounts and certain assets to the IRS has always been required, FATCA is one of the most comprehensive and global pieces of legislation to prevent noncompliance by U.S. persons. FATCA was enacted in the Hiring Incentives to Restore Employment Act of 2010 and codified in sections 1471 through 1474 of the Internal Revenue Code. In January, 2013, the Treasury Department published accompanying final regulations. The purpose of FATCA is to help prevent and locate noncompliance by U.S. taxpayers who do not report their foreign financial accounts.
There are several different ways that you might qualify for dual citizenship. Being born in a different country, residing overseas, having an international parent or paying to become a citizen through a legal program are all potential options.
Some U.S. entrepreneurs are seeking international residencies so that they can exercise a greater degree of financial freedom than their home country allows. Modern trends in local laws can make it harder for people to protect their hard-earned assets in the United States.
It is no simple task to begin a business. However, with guidance in the right direction and a strong network of resources to draw from, you can put yourself in a position to achieve the success most entrepreneurs have only dreamed about.
As much as we would like them to, assets don't just sit around and appreciate; they have to be maintained in order to grow. While this is common knowledge to most investors, the reality is there are many factors that can detract from the viability of your portfolio. Listed below are some of the dangers that you need to protect your property from.
Working with an international business lawyer may be the easiest way to protect your assets and investments, even if you're not currently trying to start a business in a foreign country.
Many advantageous investment structures and financial products are much more accessible when enacted under the purveyance of a formal corporate entity, and experienced attorneys can facilitate the steps needed to get things started correctly.
Expatriation appeals to many U.S. entrepreneurs who tire of the restrictions and regulations they're forced to deal with in their home country.
Politics plays a huge role in the way people do business, and it can stifle productivity in professional and personal settings alike.
Here are some of the ways that expatriating helps these individuals benefit from legislation and services that are more conducive to their investment strategies.
International Trust accounts are ideal for high net-worth global entrepreneurs seeking to protect their assets while simultaneously addressing business objectives. Whether you are headquartered in the United States or abroad, you know that handling money can be tricky when it's used for investment in business enterprises overseas. In order to avoid unwarranted scrutiny from government organizations such as the SEC or IRS while maintaining your cash flow goals, you may need to use trust accounts to protect your finances from unnecessary fees and taxes.
The five-flag strategy is a diversification process that includes five distinct phases. Each flag represents one form of investment or other strategy that the investor can use in a separate country. Each aspect of this strategy helps investors diversify their portfolio in order to increase their level of capital gains.
The concept is to create diversity that will shield investors from economic duress, political upheaval, the decline of currency or other negative factors, so if any of the countries is affected by one of these factors, the other investments can balance it out. The five flags include: residency, citizenship, banking assets, asset protection and investing, and business. Each of these elements is discussed below.
Deciding how to protect assets can be a complicated decision. On one hand, a person must assess his or her own comfort level regarding risk. On the other hand, a person may not be familiar with all of the various types of protection strategies.
For example, one strategy that may not be part of a traditional portfolio is having a foreign bank account. Having a bank account in another country offers many benefits and can be a profitable investment.
A dynasty trust is similar to other types of trusts, but it also has its own unique qualities.
For example, a basic asset protection trust typically allows clients to preserve and protect assets for themselves with the remainder interest going to their children. However, a dynasty trust is designed to preserve wealth and protect assets for a longer period of time.
There are some basic issues that you can probably handle without an attorney or a CPA, such as establishing foreign bank accounts, buying precious metals and buying and owning foreign real estate. However, as your asset portfolio grows beyond the $250,000 threshold, you may find yourself facing complex global matters that must be addressed in order to grow and protect your wealth.
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.
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.