What is Offshore Asset Protection? This is when a person protects his or her assets by setting up legal entities and bank accounts in other countries in order to protect one’s assets offshore. The assets can be protected from the person’s home country’s government which has been raising taxes, fees, or spying on its citizens, or unable to recover from the current global economic downturn. Moving and/or protecting assets in another country also provides global diversification. As the old, but useful, saying goes: “Don’t leave all your eggs in one basket”.
Offshore asset protection also protects one from civil lawsuit judgments. Lawsuits are a global problem especially when people are looking to make money in a worldwide economic crisis causing job terminations, pay cuts, increased taxes, and rising prices. In the United States millions of dollars have been awarded in civil trials in all 50 states for silly things like spilt coffee, injuring a burglar who intrudes in one’s property, telling a joke, or even trying to assist an injured stranger. Lawsuits can result from car crashes, leaving a gate unlocked so a child drowns in a swimming pool, a business partner committing a wrongful act, a slippery floor causing an accident, or simply saying the wrong thing at the wrong place or in front of the wrong person. Offshore asset protection includes making one “judgment proof” where no attorney would want to waste time and money suing someone who doesn’t own any assets. A civil court judgment can only be used to seize assets to pay off the judgment. Someone who doesn’t own a house, vehicles, real estate, jewels, or bank accounts because all assets are protected offshore in the name of an offshore legal entity is known as a “judgment proof” person. The civil court judgment can’t be used on a judgment proof person because he or she owns no assets in the country of judgement due to comprehensive offshore asset protection.
Besides protecting someone from civil lawsuits, offshore asset protection can be used to create a global estate plan which can avoid timely and costly probate systems. Leaving a will & testament requires that it be filed with a state or provincial probate court to determine the value of the assets and which beneficiaries get what assets. Probate requires hiring lawyers and paying court costs and appraiser’s fees. If a beneficiary challenges the will or an outsider claims he or she should have been included in the will; the expenses will rapidly rise causing delays. An offshore asset protection system creates legal entities in other countries which will own all of the assets. When the individual who set up this system passes away the assets can quickly go to the beneficiaries without going through a probate process. Offshore company registration allows the corporation to own assets whereby corporate shares can be transferred to the beneficiaries’ control within hours. An offshore private foundation can also be created to own all of the offshore corporations’ corporate shares so no transfer of ownership or beneficiaries control needs to occur. The foundation can remain in control of all assets from generation to generation.
Offshore asset protection provides lawsuit protection and estate planning tools which are valuable resources for any family.
Contact Us for assistance with setting up a Panama asset protection system.