{"id":31226,"date":"2019-12-30T11:45:15","date_gmt":"2019-12-30T16:45:15","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=31226"},"modified":"2021-03-02T09:12:12","modified_gmt":"2021-03-02T14:12:12","slug":"protecting-your-wealth-through-an-offshore-trust","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/protecting-your-wealth-through-an-offshore-trust\/","title":{"rendered":"Protecting Your Wealth Through An Offshore Trust"},"content":{"rendered":"

Donald Trump\u2019s Tax Cuts and Jobs Act of 2017 was one of the largest tax overhauls ever seen in the US economy. In a single stroke, Trump reduced corporate taxes and brought down individual tax brackets as well. While everyone was really glad he did it, it seems like he dropped the ball when he went through with the trade war with the Chinese.\u00a0<\/span><\/p>\n

These tax changes were supposed to induce inflationary pressures in the economy by giving the people more money to spend. With increasing demand and greater productivity of the American economy, you could have expected the US to come out of its economic stagnancy. But no, Trump had to raise tariffs on Chinese goods, which account for <\/span>nearly $539.5 billion<\/span><\/a> worth of imports coming into the economy every year. Trump has also recently threatened tariffs against Mexico\u2014another source of cheap goods for the American consumer.\u00a0<\/span><\/p>\n

Add to this deflationary dynamic the fact that the government intends to collect an estimated <\/span>$1.8 trillion in tax revenues<\/span><\/a> in 2019\u2014your potential trust funds really aren\u2019t worth much. Now with greater global economic uncertainty, you should move your trust funds to an offshore location. That way you\u2019ll have to pay lower taxes, have greater investment freedom and greater financial flexibility to help you circumvent untoward economic circumstances.<\/span><\/p>\n

This article will analyze the problems with holding your trust funds in the United States in light of the economic uncertainty in the country. It will also speak of the exorbitant tax rates and how these hold back your financial growth. <\/span>First, let’s discuss:<\/p>\n

116: How To Move To Panama Or Use It As Your Plan-B Residency – Expat Money Show’s most watched episode <\/a><\/p>\n

What Is An Offshore Trust<\/strong><\/h2>\n

An offshore trust is a trust structured in a tax favourable jurisdiction. There are many “offshore” jurisdictions, but only a few that offer maximum asset protection. So a well-placed offshore trust is one set up in zero tax country that also provides solid asset protection laws. Keeping in mind that the USA is one of the most litigious countries in the world and that there are more lawyers per capita in the US than in any other country in the world, it really is to your advantage to look at getting an offshore trust in any one of these countries:<\/p>\n

Antigua, Belize, Cook Islands, Nevis, Jersey, Isle of Mann, Bermuda and more. Reach out to us here<\/a> and we can set you up with our expert in the field of Offshore Trusts.<\/p>\n

Remember, a trust is not just for the rich and famous. It’s for anyone who has a moderate amount of assets and is especially important for people who have a high likelihood of being sued, for example, Doctors, Nurses, Accountants, Lawyers, Real Estate Agents and Business Owners.<\/p>\n

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Global Macroeconomics And US Stock Exchange In 2019<\/b><\/h2>\n

There\u2019s a very important reason why I specifically mentioned the <\/span>Tax Cuts and Jobs Act of 2017<\/span><\/a> together with the trade war. While Trump reduced the tax burdens on corporations and individuals alike he took all of that away when he got into the trade war. While he reduced the corporate tax by around 14%, the imposition of 25% tariffs basically raised the costs of production by 11%. Any individual taxpayer was also paying more money after the tax cut than they were before. There really was no point to the tax cuts at all\u2014they only reduced the purchasing power of the consumer.<\/span><\/p>\n

There was a dual effect of the trade war, not only could consumers buy less\u2014even producers had to reduce their supply because they can\u2019t sustain post-tariff cost levels. According to reports, the largest part of the supply chain was the import of intermediary goods that form a crucial part of the production process. Nearly 15% of all the demand for Chinese manufactured intermediary goods was affected and the US transportation sector had to pay substantially higher prices for imports that <\/span>previously cost $10 billion<\/span>. This production disruption and disruption in the logistics sector has effectively crippled the US\u2019s domestic supply chain.\u00a0\u00a0<\/span><\/p>\n

Before the US and China reached their phase one trade agreement, stock markets in the states were continuously plummeting. Back in August, when the trade tensions were at an all-time <\/span>high, the market actually <\/span>fell 760 points within a single day<\/span><\/a>. Even with this agreement in place, the markets weren\u2019t optimistic and <\/span>rose by only 3 points<\/span><\/a>. Given these considerations, this isn\u2019t the time for anyone to invest in the stock markets\u2014particularly through their trust funds, which are significant determinants of their post-retirement wealth and the wealth they pass on.<\/span><\/p>\n

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Effect On Bond Markets<\/b><\/h2>\n

Of course, now that the consumer purchasing power is at an all-time low, the government had to cut interest rates to make sure that people continued spending. In many ways, this was also a way to divert public funds into an increasingly less attractive equities market. The people who\u2019ve moved to the equities markets might very well have signed their financial death warrants but no one\u2019s making money off of the bonds market either.\u00a0\u00a0<\/span><\/p>\n

The US bond\u2019s market has gone through quite a wild ride throughout 2019, in a sequence that\u2019s termed as the \u201c<\/span>bond phenomenon of 2019<\/span><\/a>\u201d. The market was insanely erratic throughout the year and this trend will continue over the next year until things stabilize.<\/span><\/p>\n

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How Can An Offshore Trust Fund Help?<\/b><\/h1>\n

Not having an offshore trust fund is going to be a huge problem considering that most of your investments will be ensconced in the US financial markets. You\u2019ll have to pay higher taxes on these, you won\u2019t be able to invest in commodities and you\u2019ll remain stuck with investments within a dying stocks\/bonds market.<\/span><\/p>\n

Keeping your trust incorporated on US shores and continuing to work only in US investment markets can significantly hamper your financial growth. You should instead move your finances <\/span>into an offshore trust fund<\/span><\/a> that offers you greater flexibility with your investment options and lets you exert greater control over your money.\u00a0\u00a0<\/span><\/p>\n

Considering the state of global financial markets, the best option would be to use this trust fund to invest in offshore investments such as teak plantations in Panama<\/a>, invest in gold holdings<\/a> and go for unconventional investment destinations that serve as substitutes for financial investments. If you set up your trust funds in low tax\/tax-free jurisdictions, you can minimize the tax liabilities associated with the payments made from the trust. Some other advantages of setting up an offshore trust fund include:<\/span><\/p>\n