Offshore Asset Protection Trusts for US Citizens

When it comes to discussing offshore anything and US citizens - from offshore trusts to investments, from offshore banking to company incorporation - it's important to note the following facts: -

- US citizens are taxed on their worldwide income. This includes income from interest, dividends and gains whether onshore or offshore.

- The US government allows money and assets to be moved offshore freely; however it requires full disclosure relating to the amount of money or assets moved and when they are moved.

- The US government has task forces committed to the prevention of money laundering and tax evasion.

- The US government makes it clear that US citizens must comply with all reporting and taxation demands.

So, does this effectively render the offshore world inaccessible or at least useless for US citizens?

No, far from it in fact!

The utilization of offshore trusts and bank accounts can be an excellent way for US citizens to legally and securely protect their assets and themselves from litigation for example.

Offshore trusts offer an individual a fair degree of personal confidentiality, privacy and asset protection from claimants such as an ex-spouse or business client for example; and if properly structured, offshore bank accounts can offer degrees of financial protection from potential future claims as well.

There are many companies and individuals who claim to be able to offer US citizens offshore solutions for taxation reduction or negation purposes. The bottom line is - as stated previously - US citizens are taxed on worldwide income. Therefore it is at best unlikely that the services being advertised will apply to a US citizen and at worst the opportunity will require the US citizen in question to break the law.

So how can offshore asset protection trusts potentially benefit US Citizens?

Any form of asset protection trust - whether onshore or offshore - can be used to protect assets from personal or professional litigation or creditor attack.

Whether established in an offshore jurisdiction or not, most assets protected by the given trust for a US citizen can remain in America. The assets usually remain under the indirect control of the Settlor (the person establishing the trust) as well.

Such a trust will usually be 'irrevocable' for a set term, and during that period the settlor will not be a direct beneficiary of the trust.

Depending on circumstances and best advice, many US asset protection specialists favor structuring offshore or foreign trusts in such a way so that they are taxed as domestic grantor trusts.

If the trust is created properly, any creditor or anyone suing the settlor will be unable to reach or claim the assets within the trust.

If the offshore asset protection trust has been structured as an irrevocable trust for a set term, at the end of the term provided there is no current or ongoing threat, the assets can be returned to the control and direct 'ownership' of the settlor.

Conclusion

When it comes to the utilization of offshore solutions there are circumstances in which US citizens can benefit from properly structured offshore solutions.

At all times US citizens must be aware that it is their legal duty to comply with American taxation and reporting requirements.

The purpose of effective offshore asset protection planning is the negation of any economic incentive to sue.

Rhiannon Williamson is an experienced publisher who has produced articles for leading travel and tourism guides and financial magazines. Her specialist knowledge about both travel and finance gives her site Shelter Offshore the unique ability to literally cover every single aspect of moving & living abroad - including the often less discussed offshore tax advantages that can be available when leaving our homeland. Check out her website to find out how you can escape from the rat race, relocate overseas, and profit from your move!

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Kiplinger's Personal Finance

Bora Bora or Bust: Annuity Sales Incentives May Taint Structured Settlements for Accident Victims
Kiplinger's Personal Finance
That's why every year, tens of thousands of injury victims settle legal claims with a structured settlement. This involves trading a cash settlement for long-term, tax-free income funded by an annuity. It's a smart choice and encouraged by the federal ...


Eureka Times Standard

You and the Law: Have a structured settlement with Pacific Life?
Eureka Times Standard
This month, Newport Beach, California-based Pacific Life hosted a fabulous six-day event halfway around the world for the U.S. structured settlement industry. According to the invitation, the gathering at the Four Seasons Maldives wasn't a junket but ...


Structured Settlement Industry Leaders Unite: Millennium Settlements separates from Integrated Financial Settlements ...
PR Newswire (press release)
Sage is the premier provider of comprehensive settlement solutions with more than 75 full-time settlement consultants serving claimants and their attorneys nationwide. In addition to providing traditional structured settlement annuities, Sage offers ...


JD Supra (press release)

Court Dismisses Claims Alleging Undisclosed Deductions from Structured Settlement Funds
JD Supra (press release)
The latest attempt to hold casualty carriers and annuity issuers liable for allegedly failing to disclose deductions from the amounts used to purchase structured settlement annuities for plaintiffs' benefit has been dismissed by the U.S. District Court ...


Business Wire (press release)

Wide Range of Presentations at Fasano Longevity Conference
Business Wire (press release)
The afternoon sessions also included Wharton School research on the Impact of Medicare Reform on Longevity, James Atkins' Critique of Pricing in the Secondary Structured Settlement Market and an all-star panel presentation covering the Impact of New ...

and more »

Legal Talk Network

Merrimack Valley Gas Explosions
Legal Talk Network
... and co-host, Joan Pagnano discuss pending litigation and next steps for the victims of this disaster with guest Patrick Haines, the managing attorney for Napoli Shkolnik PLLC. Visit Ringler to contact a consultant in your area about structured ...


Structures to separate from Integrated Financial Settlements (IFS)
PR Newswire (press release)
Structures provides cutting-edge settlement solutions and financial programs utilized in the settlement process by working with plaintiffs, contingency fee attorneys, defendants, casualty carriers, and self-insured entities through appointed structured ...

and more »

Critical Review: Asta Funding (ASFI) & CPI Card Group (NASDAQ:PMTS)
Fairfield Current
The company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements, and GAR Disability Advocacy. The Consumer Receivables segment involved in the purchase, management, and servicing distressed ...

and more »

Insurance – RICO – Fraudulent misrepresentation
Massachusetts Lawyers Weekly
Where the recipients of structured settlements claimed that insurance companies had unlawfully deducted commissions from the settlements, the plaintiffs failed to meet the RICO standard of showing that the defendants associated together for a common ...


Marketplace.org

Lottery decision — lump sum or 30 years of payouts?
Marketplace.org
Also, some businesses purchase annuitized payouts, such as ones set up in structured settlements, so going with option No. 2 may not be as final as it sounds. But overthinking things can take the fun out of lottery fantasizing. After all, just playing ...
Tax Bill - MarketplaceMarketplace

all 9 news articles »
Google News

Investing in Structured Settlements

Often some derelict will be awarded some huge amount of... Read More

What is a Structured Settlement

A Structured Settlement is an agreement between a personal injury... Read More

A Revolutionary Fundraising Opportunity -- Life Settlements

Amid fundraisers' growing concerns about the current charitable giving climate,... Read More

Offshore Asset Protection Trusts for US Citizens

When it comes to discussing offshore anything and US citizens... Read More

Structured Settlements ? Should You Sell Yours?

In recent years, it has become more common for victims... Read More

Structured Settlements Offer Advantages over Lump-Sum Payments

A structured settlement, which offers injury victims cash payments through... Read More

If This Describes You, Dont Cash out Your Annuity

There are companies that purchase future payments. Personal injury settlements... Read More

The Cost of Not Having Money

The self-esteem factor of not having enough money is underestimated.... Read More

Structured Settlements Are Like Ants

Ants are powerful creatures. The powerful ant legs are able... Read More

Surviving High Debt States

Are you more likely to have more debt according to... Read More

The Cash Now Question

If you have ever been in a bind for cash... Read More

Options for Lawsuit Settlement Winners Receiving Periodic Payments

On January 22,2002, President George W. Bush signed into law... Read More

Annuity Transfer - What Are the Risks

Many people who know in the back of their minds... Read More

Lucky

Have you ever looked around and wondered how everyone is... Read More

Cash For Structured Settlements - The Smart Way

For most people when they buy a house it is... Read More

How To Form a UK Limited Company

When starting a business, a large number of people go... Read More

What is a Trust and what are the Benefits?

Trusts are becoming a popular way to structure business and... Read More

Should You Sell Your Structured Settlement?

The courts have just awarded you a settlement in the... Read More

Structured Settlement as an Investment Vehicle

You always hear people talking about the latest investment vehicle... Read More

A Structured Lawsuit Settlement Seemed Like a Good Idea at One Time

You are receiving payments spread out over months, years, even... Read More

When Should You Not Cash Out Your Annuity?

You should not cash out your annuity when it's not... Read More

What is Structured Settlement?

Because it is tailor-made for individual cases, the structure may... Read More

The Target Capital Structure

Firms can choose whatever mix of debt and equity they... Read More

Keeping the Lawsuit End in Mind

2 key points to stay focused on, as you are... Read More

Consider a Structured Settlement?

Structured settlements have been around for a long time however... Read More