5 Tips to Protect Your Assets with Offshore Structures
November 16, 2015
If you have gained success in building wealth and mastered the main principle of effective money management then it is the right time to think of the future. Assets’ safety is the issue that concerns not only the wealthiest people of our planet. Moderately rich people should also be aware of asset protection methods and secrets. Regardless of your expectations, winners are those who are prepared for anything and it is a fact of life. Investors and rich moguls, as well as companies’ owners and entrepreneurs, may find their money and assets under the risk of depreciation. Such a risk is caused by uncontrollable factors like financial instability, inept government, hidden traps of the commercial world, and so on. Besides, you are not protected from the pitfalls of the legal system. Your money, property or assets may be lawfully arrested if your activity seems to be suspicious; moreover, all your wealth may get under confiscation being justified by the fight against illegal activities. Of course, no real evidence is provided. One of the best ways to avoid such disastrous circumstances is to keep your money and assets in a safe haven where the paw of the law will not be able to reach. Setting up a company in an offshore jurisdiction and opening an offshore bank account often turns to be the best solution for the issue. There are many countries which would guarantee banking secrecy and keep your ownership anonymous. Thus, nobody will know the amount of your wealth as well as its location. If you started to think of opening an offshore account then these 5 recommendations will come in useful.
- Keep the distance
Keep the money as far from your domicile country as possible. For example, if you are a US resident then it is better to choose jurisdiction which doesn’t have any connections or mutual agreement with your country. When it comes to opening foreign account, it is vital to avoid banks located in the EU (as the United States has information sharing agreements with many of EU countries).
- Pay attention to the convenience
Choose banks which provide accounts with simple and fast online access and worldwide accepted credit cards. Make sure that you will be able to withdraw cash in any country you may visit. This way you will be free to manage your wealth.
- Preserve privacy
It makes sense not to open a bank account on your name and there are several ways to do that. First, an account may be opened by an offshore company which is registered on the name of nominee director and has a nominee shareholder. That means that you will not appear on public record as the company’s owner. And second, a bank account may be opened on the name of “nominee” but it will cost you more. This is the perfect way to protect your assets as nobody will know that in fact you are the owner of a particular company or bank account.
- Use additional entity
Your personal details should not be recorded by a bank. This is a secret tip which most of the offshore experts prefer not to disclose. Your banking may be organized through an additional trusted offshore entity; such entity will provide qualitative asset protection and screen your wealth from public view. The additional entity keeps the money you earn. Herewith you legally own the money according to the written agreement.
- Don’t speak about your wealth
It is a good recommendation to avoid speaking to anybody about the amount of your wealth and where it is really located. The intimation from an informed person is one of the main reasons why your assets may be tracked. The secret location of your wealth may not be disclosed due to international transactions monitoring or special financial investigations. So, be cautious and talk less. Don’t underestimate the importance of putting a strong layer of protection on your assets. It doesn’t matter whether you are convinced of the urgency of being prepared to unexpected twists of fate or you think of postponing the issue for several years. A legal case may occur in your life at any moment; the more you play for time, the less are your chances to successfully place assets into the offshore company are.