Learning Center
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

A Foreign Asset Protection Trust As an Option to Protect Your Retirement Nest-Egg


									Wealth management planning, as regular readers of my articles will know,
has changed drastically in the last few years. Whereas in the past
business asset protection basically meant keeping your assets safe from
creditors who might want to sue you (think McDonalds being sued for hot
coffee spills) or from ex-spouses wanting more than their fair share...
today the threats have changed.Even moderately wealthy people need to
apply asset protection techniques, for example, on their retirement
funds. Retirement funds includes any nest egg you have built up. The
protection you need is against devaluation, inflation, or just plain
seizure by the government. A good foreign or offshore trust can help you
hedge your risk and expand your possibilities - not just to protect your
assets, but also to see them grow and flourish in a secure offshore
environment!We have already seen the governments of France, Hungary and
Argentina forcing taxpayers to move retirement funds out of private
pension plans into state-backed plans. The way governments in the US and
Europe are printing money these days, doing so would seem like a
particularly bad idea.How would this work, for example, in the case of
the USA?Simply, if the government found itself in need of more cash, it
could reduce the flexibility of IRAs. Right now, Americans who don't want
full exposure to the collapsing dollar can choose to invest their
retirement accounts in tangible things like gold, real estate, or
offshore multi-currency bank accounts containing foreign currencies that
are expected to do better. In future, these options may be described as
'too dangerous' for people to invest their retirement funds in. Instead,
government bonds will be promoted as a safer, more conservative asset to
invest in. Of course, US government bonds are nothing more than IOUs, and
we would argue they are about the most dangerous thing you could invest
in right now.The same situation applies in most other countries,
especially in Europe and Australia. There is more and more government
pressure to invest retirement funds and pensions into 'secure' government
debt. It is against this kind of threat that a foreign or international
asset protection trust structure can be useful.An asset protection trust
can be either stand-alone, in the case of regular savings - or it can be
incorporated into tax-advantaged pension plans like Roth IRAs in the USA
or SIPPs in the UK. In the latter case, the trust is owned by the plan
itself, while you the investor maintain full control over the trustee,
that can be a foreign LLC. Good offshore jurisdictions to work with
include Nevis and the Cook Islands, or New Zealand for those seeking an
onshore, non-resident asset protection trust.

To top