Getting a Foreign Asset Protection Trust to Protect Your Investments
As for those who are practicing wealth management planning, it is easy to spot that there’s been a drastic change over the last several years. Whereas back then, business asset protection is all about making the effort of protecting your assets from any creditors who may be thinking of suing you; just think of a former spouse who wants more than their current share or the McDonald’s incident where the burger food chain has been sued for hot coffee spills. If you still think that threats remain the same, you’re not because they’ve changed.
Even moderately wealthy individuals have to apply for an asset protection trust like for instance, to protect their retirement trust funds. These retirement trust funds do include the nest egg that they’ve built up throughout years of hard work. The type of protection that you should be seeking is protection from inflation, devaluation or simply, plain seizure of the government. Having a reliable and good offshore or foreign asset protection trust can play a big role in helping you to hedge your risks while expanding possibilities. This is not just to provide protection to your assets but also, to ensure that it will grow and flourish in a secure offshore environment.
If you will try to take a quick look at the government of Argentina, Hungary, and France, they are actually forcing their taxpayers to move their retirement funds out of any private pension plans and put it in state-backed plans. The way how the government in Europe and the US are printing money today would appear to be a bad idea for those who are saving for their retirement.
Quite simply, if ever the government needed more cash, it may reduce the flexibility of the IRAs. As of this moment, Americans who do not want to have full exposure to the collapsing economy may opt to invest their retirement accounts to tangible things similar to real estate, precious materials like gold and silver or to offshore multicurrency bank accounts that contain foreign currencies that are expected to see growth in the coming years. In the future, these said options could be described as too risky for those who are investing their retirement funds. Rather, the government bonds would be seen as a safer and more conservative asset to put your money in. Obviously, US government bonds are nothing when compared to IOUs.
As a matter of fact, the same situation is applied in many other countries particularly in Australia and Europe. There’s more and more pressure from the government to invest pensions and retirement funds into a secure government debt. It’s actually against the threat that an international or foreign asset protection trust structure could be useful.
Asset protection trust may either be standalone in case of a regular saving or it may be incorporated into tax advantage pension plans similar to SIPPs in the UK or Roth IRAs in the US. In the former, the trust may be owned by the plan itself while being the investor still has full control of the trustee that could be a foreign LLC.