In our previous post, we began speaking about the value of going offshore with one’s financial and banking strategies, and with respect to asset protection. As we mentioned, there are a variety of reasons to consider going offshore, including protection from creditor claims, increased privacy, decreased taxation and increased access to world markets.
Going offshore is not something to take lightly, though. It is a matter of doing thing legally and prudently. To describe specifically “how” to go offshore is beyond what we can address here, but suffice it to say that it is critical to work with experts who know what they are doing and who approach asset protection ethically.
When it comes to evaluating an asset protection plan, there are a number of things one should be aware of before, after and during the process. One is that it is important to start planning before a claim arises in order to avoid fraudulent transfer penalties. Getting a plan rolling early is important, because planning too late can result in financial losses.
Asset protection should not be a substitute for insurance, because asset protection may not be enough to cover all one’s bases. It is usually best to play things safe, and not put all one’s eggs in one basket.
For those who own businesses, it is important to remember that personal assets should be placed in trusts, while business assets should be kept with business entities. Commingling the two can create legal problems.
A couple other pointers: make sure that you understand and can explain your plan to somebody else; and be aware that honesty is always the best policy.
Source: Lawyers Weekly, “Look offshore for asset protection,” Bruce Sockhill, March 26, 2013