Safeguarding your assets in an offshore territory can offer enhanced asset protection compared to local business structures and trusts. Local asset protection vehicles are more prone to seizure via court rulings and judgements. Several offshore asset protection jurisdictions do not acknowledge foreign judgements. Robust offshore asset protection jurisdictions pose a powerful challenge to those in pursuit of your well-earned wealth.

The Need for Asset Protection

Protecting assets signifies different things to different individuals; it is also based on what country you reside in. Usually, it means safeguarding your assets from financial threats which are looking to seize those assets for themselves for different intents irrespective of whether they are private parties or a creditor agency.

It is essential to ensure that your assets are safeguarded in several national laws that makes it comparatively simpler for an individual to seize your assets for various intents. To ensure financial security and continuity, keep in mind that the assets are :-

• Are not simple to track down (i.e. offshore account or company structure)
• Are situated in a foreign nation (i.e. overseas jurisdiction)
• Not in your own name (nominee services)

Nominee services permits directors and shareholders to secure shares and directorial power on your behalf, eliminating your names off significant company documents. Although, this situation is not permissible for every situation, so ensure to get legal advice before proceeding.

An offshore jurisdiction has significance as its corporate laws in these jurisdictions make it tough for your adversaries to search for information. Ideally, for optimum protection these jurisdictions are not a party to any information-sharing agreements with other nations and do not acknowledge foreign court judgments.

An offshore bank account, company trust, or foundation situated in a foreign jurisdiction offers you a steadfast plan B to protect you in case of an emergence of domestic disturbances. From governmental seizure, creditor harassment, fraudulent legal claims, professional malpractice suits to economic and political instability, offshores can provide assistance against all such major concerns.

Read more: Offshore Trust Set Up

Securing Real Estate Assets via an Offshore Company

Registering a company offshore with the intent of holding an investment in real estate is one of the most preferred uses of offshore companies. When investing in real estate, the investor has the choice of either purchasing the property in their personal capacity or setting a company to hold the investment. There can be considerable reasons for holding property in a personal name, like the existence of state restrictions that does not permit corporate ownership of real estate or even potential tax benefits for holding investment property privately.

Essential Benefits

Are you still wondering about the benefits of a company registered in a foreign country with the intent of safeguarding your assets for generations to come?

Take a look at some of the essential advantages mentioned below :-

• Taxes

In some nations, the inheritance tax is so excessive that your successors might end up giving half of their wealth to the government. For some it might seem like a fair deal, although for others might not. An offshore-registered company, a fund or a private foundation / trust can aid in drastically reducing the inheritance tax or even eliminating it.

• Allocation of the Inherited Property

Each nation has their own governing laws related to the matters of succession or inheritance. Generally, the closer the relationship is, the easier and inexpensive the succession processes are. Although if you are in a situation wherein you have several successors and you would not prefer them to inherit your property in equal shares, you can always make a will however it can be challenged in court. So, when your property is under your offshore-registered company, it is much simpler to allocate the property to your successors.

• Safety of Your Heirs’ Confidentiality

When an affluent individual passes away, it quickly becomes news. The procedures involved in the transfer of the property rights to the heirs can draw excessive public eyes. In the event that your assets are registered in the name of your offshore-registered company, individuals in your native country are going to be unaware of who your heirs are and the assets that they might attain.

• Terms & Conditions on the Distribution of the Property

When your property is possessed by the company while you are still the owner, you can define what stakes of the company each of your heirs is going to receive in the event of your demise. Some national legislations can pose issues in property distribution if it is registered in the name of the person, and not the company.

An Interesting Read: Private Trust Company

Labuan Foundation for Asset Protection

A Labuan Foundation is a well-known wealth management vehicle for asset protection, particularly more for affluent individuals. Assets which are positioned or endowed into the foundation are protected against possible claims from future creditors as the ownership of the assets have been transferred to the foundation and the foundation itself is a separate independent legal entity on its own.

A Labuan Foundation is also a vehicle which can be used in estate planning to avoid the forced heirship rule, particularly for residents of civil law countries. To be precise, the Labuan Foundation Act (LFA) prevents the assets of the foundation being from assessed and subjected to the forced heirship rule. If you are considering to set up a Labuan Foundation to secure your assets, reach out to our QX Trust team of consultants at CONTACT US or consultant@qx-trust.com for a complimentary consultation.

Read more: Wealth Management and Succession Planning