4 asset protection structures used in international tax planning
There are several asset protection structures that can be useful for international tax planning, including:
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Offshore trusts: These are trusts that are established in a jurisdiction outside of the individual's home country. Offshore trusts can be used to hold assets such as bank accounts, investment portfolios, and real estate. They can be set up to protect assets from creditors and lawsuits, and can also be used to minimize taxes on income and gains from the assets held in the trust.
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Offshore foundations: These are similar to trusts, but are established under the laws of a particular jurisdiction and are typically governed by a board of directors or trustees. Offshore foundations can be used to hold and manage assets, and can also be used for tax planning purposes.
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Offshore companies: These are companies that are incorporated in a jurisdiction outside of the individual's home country. Offshore companies can be used to hold and manage assets, and can also be used for tax planning purposes.
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International business corporations (IBCs): These are companies that are incorporated in a jurisdiction with favorable tax laws, such as the Bahamas or the British Virgin Islands. IBCs can be used to hold and manage assets, and can also be used for tax planning purposes.
It's important to note that the use of offshore trusts, foundations, companies, and IBCs for tax planning purposes can be complex and may be subject to legal and regulatory restrictions in different jurisdictions. It's advisable to seek the advice of a tax professional or financial advisor before setting up any of these structures.