Offshore trusts pack a big punch in a very simple legal agreement. Although there are similar agreements like wills or prenuptial agreements that can appoint a set beneficiary for certain assets, these agreements still carry many caveats that can make them null and void.

An offshore trust guarantees that there is no government intervention when the time comes to distribute your assets to your beneficiaries. When using an offshore trust in place of a will, your beneficiaries would not have to worry about any forced heirship laws interfering with what was left for them.

Unlike a prenup, offshore trusts are straight forward and leave no room for contest by your spouse in the event of a divorce. Because the offshore trust will be established by yourself for the benefit of a beneficiary, there is no way your spouse can challenge you for the assets in the trust once the trust is established before the marriage takes place. Since a prenup is an agreement between you and your spouse, there are many ways your spouse can challenge its validity, making your assets vulnerable in the event of a divorce.

If you think an offshore trust would be beneficial to you, don’t hesitate on consulting with an offshore trust provider since the time you choose to establish the trust can change the entire scope of the agreement.

These offshore financial services experts will not only help you to establish your offshore trust, but they’ll also be able to provide you with excellent trustee administration services that can offer added benefits. Belize trusts provide the settlor with preservation of wealth, asset protection, tax benefits, estate planning and confidentiality.

Continue reading to learn about some trustee administrative services that these offshore financial services providers offer.

Estate Planning

We had already mentioned the benefits of replacing the will with an offshore trust. But these offshore providers can also assist in ensuring that your assets are distributed efficiently throughout your loved ones so that the trust performs in accordance with your intentions.

As such, choosing an appropriate trustee is imperative when forming a trust. In the event of your passing, your friends and family members may be disoriented with grief causing them to become overwhelmed with the responsibility of handling your estate. The offshore financial provider that you establish the trust with can provide a corporate trustee that would ensure impartiality so that your intentions are fully carried out.

Estate Administration

In addition to helping you choose a corporate trustee, the offshore providers can also assist with estate administration tasks. These tasks include notifying the beneficiaries of the trust, collecting the assets, locate the trustee, probate assets, and distribute the assets.

Financial Planning

Moving away from estate planning, trustee administration services also include financial planning. This involves retirement planning, tax planning and education planning for your kids.

The offshore providers can assist you with various saving and investment options that are tax-efficient and cover long-term expenses.

Deciding to invest offshore is a crucial decision, but also, a smart one that many investors are turning to lately. By investing offshore, you’re affording yourself many financial benefits and security for your assets and personal information that would otherwise be privy to your government. These benefits include currency diversification, asset protection, less tax, wealth management, and increased privacy protection.

Making the decision that offshore investing is best for you is merely just the tip of the iceberg.  Next, you’ll need to determine which offshore jurisdiction and what financial service best suits your needs.

How do you choose the best offshore jurisdiction?

Offshore jurisdictions are also referred to as tax havens and provide a wealth of benefits to international investors. Here are some characteristics a good offshore jurisdiction should have.

• No taxation in place for offshore companies operating outside the offshore jurisdiction.
• The offshore company laws in the jurisdiction protect the company and shareholders.
• There is no obligation to present any annual financial statements or accounting records.
• Offshore banking is readily available.
• Banking secrecy laws are in place.

Offshore jurisdictions like Anguilla and Belize provide all these benefits. Both countries are tax havens with strict privacy laws to protect foreign investors. They have also become very modernized in its internet and international calling services which ensure that you have total access to your offshore financial institution from wherever you are, whenever you need to. Anguillan investors can enjoy instant and secure offshore company formation services with ACORN (Anguilla Commercial Online Registration Network), a state of the art company registration system.

After deciding upon a jurisdiction for your investment, you must select an offshore company formation that fits your situation best.

Which offshore company is better, the IBC or LLC?

Most offshore tax havens provide offshore investors with two types of companies – IBC (International Business Company) and LLC (Limited Liability Company). Both types of companies protect their members from any personal liability incurred from the debts of the entity by creating a layer of legal separation between the owners of the company and the company itself. But, there are still many notable differences between the two that give each company a distinctive edge depending on what your goals are.

IBC

The IBC or International Business Company is a tax-neutral offshore company that is formed under the laws of a jurisdiction. The IBC cannot conduct any business within the jurisdiction it was formed. Any profits earned by the IBC are free from any corporate taxes in the offshore jurisdiction.

IBC’s provide complete confidentiality for the owner of the company since no personal information of the owner is necessary to be publicly filed with the government. Instead, only the information for a registered agent is required. As a legal entity, IBCs are free to engage in different businesses and activities such as buying real estate.

IBCs are the most commonly used companies for offshore banking in order to conduct international trade and investment activities.

Here are some activities IBCs are free to conduct:

• Buying and selling goods and services;
• Hold bank accounts;
• Operate businesses;
• Ownership of real estate and intellectual property.

LLC

An LLC or Limited Liability Company is a hybrid between a partnership and a corporation. An LLC has the same flow-through characteristics of a partnership where all income of the company flows through to the owners or investors; but it is like a corporation since it is limited liability and the owners are not personally liable for any debts of the company.

An LLC doesn’t issue shares and is managed by its members. Unlike an IBC, an LLC isn’t limited to conducting business solely outside of the jurisdiction of which it was established. An LLC has no restrictions on where it can conduct business.

Because an LLC doesn’t issue shares, it distributes dividends to its members. The distribution of these dividends is set out in an operating agreement and is not directly related to the value of a member’s contribution.

If you’d like to further discuss how each of these companies can benefit you, or which offshore jurisdiction will suit you best, contact the offshore financial experts at ICS.

An offshore foundation is one of the major ways for savvy investors to get the ultimate tax benefits and privacy protection. There are popular offshore tax havens, like Belize, that provide unmatched tax benefits for international investors like no capital gains tax, no income taxes and other tax exemptions.

Here are the main benefits of establishing a Belize offshore Foundation.

Asset Protection

Ensuring that your assets are managed in the right manner is a big concern for many people. In order to avoid having any legal rulings imposed on your assets and risk losing the rights to them, investing the assets in an offshore foundation would ensure that you remain total control over their administration.

Tax Breaks

Offshore foundations in Belize provide a wide range of tax breaks that make them very desirable to investors. Some tax benefits Belize offers founders of offshore foundations are exemptions from any income tax, business tax, withholding tax, asset tax, gift tax, profits tax, capital gains tax, distributions tax, inheritance tax, estate duty tax, and stamp duties.

Inheritance Planning

This is probably the first reason that comes to mind for establishing an offshore foundation. Offshore foundations are the ideal way to set money aside for your children after you’ve passed without having them accrue any of the taxes listed above. Also, by placing assets for your heirs in an offshore foundation, you get the security of knowing that your assets are totally protected and will only benefit the beneficiary listed in the bylaws.

Retirement Program

Many large corporations use offshore foundations as a vehicle for their employees’ pension schemes. By utilizing the offshore foundation for this purpose, employees are ensured that their funds are secure and can be easily disbursed via the rules in the foundation’s bylaws. Because the pensions’ funds will be placed in the offshore foundation, employees will receive a higher interest rate on the money since it is not taxable.

After the last global economic crisis, many offshore destinations, like the Caribbean, suffered a hit in their economies causing many to be forced into austerity. But despite the economic state, savvy investors continue to capitalize on offshore investments in the Caribbean due to its benefits which far surpasses any cons imposed by the crisis.

Now, years later, the Caribbean has been fighting back to regain control of its economy and is coming out on top as one of the most sought after offshore tax havens. For example, Anguilla offshore companies and Belize offshore companies are now providing American investors with a secure and confidential place to invest their wealth while protecting those assets from any government action as well as unnecessary taxes. In addition to utilizing international companies in the Caribbean for asset protection, offshore trusts are a superb way to ensure that your assets in heirship are dispersed how you want without any legal impositions.

The Caribbean offshore financial sector provides many services to afford the asset protection, privacy and profits investors desire. The Caribbean’s economy is taking a turn for the better. Here are two ways the Caribbean is regaining strong economic stability.

Booming Tourism and Construction Sectors

Two main sectors in the Caribbean are its tourism and construction sectors. Travel and tourism has accounted for 4.5% of the region’s GDP in 2014 and is estimated to grow at a rate of 3.3% per annum from 2015 to 2022.

According to the Caribbean Development Bank, Caribbean countries like St. Kitts and Nevis, and Turks and Caicos Islands each experienced 4% increase in real estate related construction. Belize, Guyana and Suriname also had growth in excess of 3% because of construction-related services.

This rapid growth and estimated increases in growth will greatly assist the Caribbean in maintaining economic stability in years to come.

Strong Debt-Reduction Strategies are in Place

In 2012, overall public sector debt in the Caribbean was estimated at about 79% of regional GDP. Each country has devised a strategy to tackle this debt head on. For example, Belize took advantage of external debt instruments to consolidate its debt into one US dollar loan that provides cash flow relief through changes in both coupon and maturity structures. This loan allows the country to further its development on a whole while reducing its national debt.

All in all, both growing economic sectors and debt reduction strategies will lead to a more stable government. A more stable government leads to longevity of legislation and stabilization of local currencies which benefits offshore investors and guarantees consistency in their offshore businesses and accounts.

Most of the largest companies around the world have long been investing their financial assets and making the most profits on their monies offshore. But offshore investing isn’t only for the wealthy and large multi-million dollar companies; you can capitalize on offshore investments too.

One of the greatest benefits of offshore investing is how easy it is to migrate to the country you have been investing in. If you’ve been planning for your future and want to move to the Caribbean for your retirement, offshore investing is the way to go to make a profit on your hard earned money without it being heavily taxed.

Here, we’ve outlined 5 simple steps you need to take to successfully move your money offshore and capitalize on it for retirement.

1. Pick a tax haven

The most critical step when deciding to move your assets offshore is choosing a tax haven that’s right for you. Although many of these countries may have lots of similarities, there are some differences that may matter most to you.

You’d want to choose somewhere with a convenient location for international travel but is still cost effective. Belize is one such place. Along with the aforementioned qualities, Belize also has a budding offshore financial services sector with attractive benefits. Belize offshore companies, for example, are a popular choice among foreign investors because of the country’s lack of taxation on any profits made from IBCs or assets transferred via a Belize Trust.

Another great retirement destination that doubles as a beneficial tax haven is Anguilla. Anguilla is a developing country in the Caribbean with lots of beautiful beaches great for enjoying endless days of relaxation. To complement its attractive locale, its offshore sector is equally as attractive to investors. Anguilla IBCs provide significant tax exemptions while maintaining international standards in the structure and administration of its financial services regulatory body. Along with IBCs, Anguilla also has LLCs to facilitate international business. Anguilla is able to incorporate companies instantly for anyone anywhere in the world at any time of day.

It is good to shop around and see which country has the most benefits to offer you, as well as which would be the most comfortable for your lifestyle when retirement comes around.

2. Set up a foreign entity

After selecting what country you want to invest in, it’s time to decide what type of international company is right for you.

As mentioned in the first step, there are many legal foreign entities that are available for you to choose from. These include the IBC, LLC, trust, and foundation.

The IBC refers to international business company. IBCs are tax free and exchange control free private limited companies that have all profit-earning activities occurring outside its country of incorporation.

LLC refers to limited liability companies.  LLCs offer its owners attractive features like tax exemptions and privacy but with additional asset protection.

An offshore trust is a conventional trust, but it is governed by the laws of the offshore jurisdiction in which it was formed; therefore giving the assets more protection against any legal action taken against the settlor in his/her home jurisdiction.

Private foundations are legal entities set up by an individual or group of individuals to safeguard and administer assets for a specific purpose or person based on the bylaws of the foundation. A private foundation does not have any legal requirements or reporting responsibilities, giving the founders maximum privacy.

There are established offshore financial services providers in the Caribbean that can help you decide which legal foreign entity is right for you.

3. Hire a Nominee

One of the main benefits of investing your financial assets is the privacy that comes along with it. To maintain this privacy and confidentiality of your personal information, a nominee is used to physically conduct business on your behalf in the jurisdiction of incorporation. The nominee’s name will often time be the name that is listed, if necessary, on any registration documents filed in the offshore jurisdiction.

4. Open an international bank account

Opening an international bank account is a fairly easy process, and one that your nominee can do for you to ensure that your personal information isn’t accessed through bank documents. Although, having that sort of information being breached is highly unlikely since in most cases it is illegal for tax collection agencies like the IRS to obtain any information from your nominee.

5. Save your profits for retirement

Now that you’ve got your international company and offshore bank account up and running, you’re free to conduct business internationally and gain returns that you can save for your use during retirement without the worry of having it compromised by any government interventions.

Belize has many offshore investment opportunities to offer. The Belize trust is one that has many beneficial uses. Offshore trusts in Belize allow investors to take control of their assets and safeguard these assets against any lawsuits to be filed against you. Belize trusts are a great means to guarantee your assets are disbursed as you intend them to be without any fear of government interference.

Here are the 3 most beneficial uses of Belize trusts.

Tax Planning

A Belize trust is a good tax planning tool as it can provide substantial income tax savings as well as capital gains tax, inheritance tax and stamp duty if set up properly. Although it’s customary to declare all worldwide income based on government-imposed obligations, you are extended tax credits in your home country for taxes paid elsewhere. And, offshore taxes are often minimal to non-existent in jurisdictions like Belize.

Inheritance Planning

A common practice in many civil law jurisdictions, like France, Japan and the United States, is forced heirship. Forced heirship is when the estate of a deceased person is separated and distributed and passed to the deceased’s next of kin, overriding whatever was stated in the deceased’s will.

A Belize trust is a means to circumvent forced heirship as the assets of your estate will now be property of the trustee in care of the beneficiary and administered under the laws of Belize’s jurisdiction. This fact makes the assets in the trust secure from any legal interference from your home government.

Privacy

Belize trusts provide a wealth of privacy and confidentiality for offshore investors. Because assets will be removed from your possession and now be owned by the offshore trust, those assets will no longer be reported to the government as a part of your asset portfolio, thus legally eliminating the amount of taxes you have to pay at home. By using the trust to secure your assets, you’re gaining privacy, safeguarding your assets against any legal action, and ensuring that your beneficiaries will always enjoy the benefits of the assets you put aside for them.

Offshore trusts in Belize provide unmatched protection for your most valuable assets. Belize offshore trusts are free from being subjected to any liens in your home jurisdiction and offer tax exemptions on any profits or capital gains. Here are 3 ways opening an offshore trust in Belize can help you.

Asset Diversification

Asset diversification is becoming more and more important to the savvy investor. With economic markets becoming increasingly unstable, it’s best to secure your money with offshore investments to ensure that all your assets are not negatively impacted by economic changes in any one jurisdiction.

By diversifying your assets in multiple countries rather than just dividing it between various accounts and stocks within the same jurisdiction, you’re safeguarding your finances against future devaluation as well as any legal ceases.

Reserving Assets for Future Use

An offshore trust in Belize is a great way to safeguard and reserve your assets for future use. These uses can range from a will, to charitable donations, to a future fund for children. Offshore trusts allow you to safely reserve your assets within a legal obligation for the benefit of another – whether that beneficiary is a family member, loved one or charity.

Increased Privacy and Fewer Taxes

The privacy provided by an offshore trust is a big benefit settlors enjoy. When assets are placed into an offshore trust, they are no longer the property of the settlor. Should investors have assets that they don’t want to report to the government, they could place them into an international trust where they would have no obligation to report or declare the assets to their country’s government. Belize offshore trusts provide an added benefit to settlors as these Belize trusts are exempted by law income and corporate taxation. In Belize, there are no estate taxes, inheritance or succession taxes, gift taxes, nor stamp duties levied on any trusts.

The need for asset protection planning has become increasingly important as local governments seem to pry deeper and deeper into your personal finances making those hard-earned assets vulnerable to any litigious actions taken against you in your home country. Luckily, there are legal ways to safeguard your financial assets in order to eliminate any personal ties you have with them. Investing offshore in Belize provides you with those legal asset protection methods that can protect your assets against divorce or any other litigation.

Create a Belize LLC

A Belize LLC (Limited Liability Company) is a great way to protect your privacy as it will become its own legal entity and can function similarly to how a person can without using the owner’s name. A Belize LLC can open a bank account, register a car, have its own phone number, own real estate and more. By performing business affairs using the LLC, you limit exposure of your personal information. Also, in Belize, the LLC’s owner information is not published in public records. So even though the LLC is running as a public corporate entity, it is in no way publicly affiliated with you. Creating a Belize LLC is fast, affordable and secure providing you with unmatched privacy protection.

Buy Belize Real Estate

Investing in Belize real estate can provide tremendous asset and privacy protection for safeguarding your personal finances against any legal action in your home country. With low interest rates on bank savings accounts, investing in real estate is a sure way to profit on your financial assets. Belize real estate provides asset protection at a fraction of the price you’d pay for real estate in the U.S. or other parts of the world. You can buy exclusive beachfront properties in Belize for under $100,000.

Even if this property is in your name, because it is in an offshore jurisdiction, it will be safe from any legal actions being taken against it by your home government. The only way these physical assets would be at risk of any seizures would be if litigations were made in a Belizean court (which is highly improbable).

Property in a foreign country does not form any part of a U.S. property registry or tax database so it is very unlikely for your offshore investments to be linked to you. Owning Belize real estate is a sure fire way to isolate your personal assets completely from your home government, its lawyers and tax collectors.

A Belize foundation is a great way to safeguard your assets for the future while avoiding taxes. Similar to a private trust, an offshore foundation is created to safeguard assets for the future benefit of a beneficiary. However, unlike the private trust, the assets placed in an offshore foundation don’t belong to any one person, but to the foundation as a legal entity.

An offshore foundation is bound by the rules set out in its charter or by-laws. Its administrative decisions are made by a council appointed by the founder. All assets placed in the foundation are independent of the founder or beneficiaries.

Here are some beneficial uses of a Belize foundation.

Succession and Estate Planning

A foundation is a great substitute for a will in succession and estate planning. Similar to a trust, a Belize foundation can safeguard assets for a beneficiary. Because an offshore trust is a separate legal entity from its founder, all assets placed in the trust is no longer associated with any one person.  Thus the assets remain safe and unattainable to any seizures by the government or courts. The assets of the trust are only transferrable to the stated beneficiary and cannot be used for any other purpose.

Since Belize foundations are non-taxable, any estate, gift, or property taxes that may have been levied upon the assets, if they were placed in a will, would not be applied upon transfer from the foundation to the beneficiary.

Also, by using an offshore foundation to safeguard assets for your heirs, you can avoid forced heirship laws that may be in place in your home jurisdiction. The rules set out in a Belize foundation will be honored at the time of your passing despite any heirship rules in your local jurisdiction.

Pension Funds

An international foundation can be used as a vehicle to set up and maintain a pension scheme for a company or organization. Foundations are ideal for this as it keeps all the funds in the pension scheme well accounted for but independent from any one owner until the time of retirement for each pensioner. Also, having the ability to amend the by-laws as necessary makes it easy to add and remove pensioners.

Charitable Purposes

Belize foundations are the most suitable legal entity for safeguarding funds for your charity. By creating an offshore foundation, you can not only ensure your charity receives your donation, but also ensure that there is continuity in donations for your charity’s cause. The by-laws allow for rules to be set for an infinite amount of time, so even after your passing the purpose of the foundation does not change and the foundation’s council can still maintain it for the charity’s continued benefit.

Asset Protection

A Belize foundation is an asset protection and wealth management alternative to the Belize IBC. Offshore foundations allow investors to transfer ownership of their assets into a completely separate legal entity to avoid any loss due to personal liabilities, while still maintaining control over how the assets are managed and distributed.

This is possible because the founder has the power to amend the foundation’s by-laws as well as appoint or remove any member of the foundation’s council.

Consult a Belize foundation specialist, to find out how an offshore foundation in Belize can work for you.