Offshore Asset Protection
Offshore asset protection refers to one of the best asset protection strategies favored by asset protection groups to achieve financial privacy for their clients. To be effective, a new entity should be formed in a country that is not only corporation-friendly but is also debtor-friendly.
Once of the many factors that can result to a depletion of wealth and which necessitates offshore asset protection is the possibility of frivolous lawsuits from lawyers and from creditors who all want a piece of the debtor's property. A person can modify the nature of his assets (some prefer the formation of limited liability companies in other States or countries) so that it is out of the creditor's reach.
The formation of a corporation is a good strategy in creating an asset protection layer because under the corporation law, it is only liable up to the amount invested by a person in the company. So if a creditor has a claim against a certain person, it can only be entitled to the extent of the investment or share of the debtor he is after.
It is best to acquire an offshore investment entity from and through a lawyer because the client-attorney privilege prohibits him from revealing confidential information that can be used against you. Here are the top offshore sites where you can invest fro purposes of offshore asset protection: 1. Switzerland
This place is popular for being the host of over 35% of the world's private assets. The Swiss Insurance law has provided for the legalities in the implementation of asset protection. Those who have invested in Swiss life insurance and annuities are assured f protection from their creditors and any collection procedures that may be initiated against the policy. Even US seizure orders will not hold water in Switzerland. Here are the top reasons why Switzerland is a favorite offshore investment site:
· Provides utmost confidentiality for investors
· It has the best financial secrecy laws
· Banking secrecy law
· Non disclosure of insurance policies 2. Panama
This is an emerging offshore location for those who wish to set up corporation to protect their assets. In fact, it is the becoming the destination of choice for offshore investment, next only to Switzerland. Only lawyers are allowed to put up a corporation in Panama so make sure you only deal with lawyers (who will register your corporation) to take full advantage of the lawyer-client privilege. Panama is an ideal offshore location because it is a tax haven for investors, it does not have tax agreements with other countries and it considers tax evasion a mere civil and not a criminal case. Panama City (which is the center of banking) is only 7.9 sq miles but it is the site of 150 international banks. It allows the issuance of bear shares which does not identify the stock owners. Looking for a country that provides bank secrecy for its inhabitants particularly investors? Then go to Panama. 3. The Bahamas
This is also a favorite place for offshore investment although the Bahamas bank secrecy law has been challenged and its effectiveness questioned in the insider trading case of Dennis Levine who deposited his accounts with Bank Leu in the Bahamas. What Levine's case should teach offshore investors is that while bank secrecy can protect their assets, human factor can still play a part in the failure of this asset protections scheme. There are some US States that purportedly offer asset protection strategies. One can register a corporation in Nevada because of its investor-friendly laws. But no matter what your choice of State or offshore investment area is, in the end, proper asset protection planning will reap benefits for those who are wary of ending up with nothing at all. Make sure you use the services of a good asset protection lawyer to help you protect your assets legally an properly.
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