Offshore FAQ

A list of frequently asked questions covers most common offshore issues, providing short answers and explanations.

What is an Asset Protection?

This is a general term used to describe the concept of legally transferring your assets into a legal entity, which will protect them from frivolous litigation, seizure from government, or anything that may threaten them.

Is it Legal to Move Assets Offshore?

There is nothing illegal about moving assets offshore, you can break the law if you do not declare the existence of offfshore account to the tax authorities. Any assets over which you have control, domestic or offshore, are probably liable to taxation in your home jurisdiction.

What May be the Reason to Move Assets Offshore?

If you move your assets offshore, this can provide you access to the most effective methods of asset protection and tax reduction, through international corporations and foundations.

Once a structure has been legally created it can be used for international trade and investment, and this opens the whole field that cannot be accessed without forming this kind of structure.

What is a Declaration of Trust?

In the context of an offshore company, it is a written undertaking by a nominee shareholder to the beneficial owner to hold shares on his (beneficial owner's) behalf, in the capacity of a trustee. The nominee cannot transfer, deal with, or dispose of the shares, except on the specific written instructions of the beneficial owner.

What is the Best Offshore Center to Use for Asset Protection and/or Estate Planning?

Most modern tax havens are very similar as regards their tax laws and services, although some do offer entities not available in others. Of course, certain tax havens have got bad reputation over the years, but most are quite safe. The most effective financial plans are usually made using a mix of jurisdictions.