Avoid Losing Your Capital with Offshore Asset Protection Trust

An offshore trust is like a traditional trust you can set up in your local bank, but it provides additional protection for your assets. Offshore trusts offer complete asset protection that can reduce your risk of losing your capital. The arrangement is formed by a group or a person known as the ‘trustee’ and another group or individual known as the ‘settlor.’ Provisions are formed in a deed of trust. Offshore trusts are formed to hold funds, titles to assets, and property, to manage these assets according to the deed of trust, and provide distributions and offshore trust benefits to beneficiaries of the trust fund.

Offshore trusts offer full and absolute confidentiality. It gives you complete privacy and ensures that your assets are protected from prying eyes. Having an offshore trust can be beneficial if you think someone might be after your assets—whether it’s the government, your business competitors, or people who sue wealthy individuals for a living. You get protection from liability, too.

Having an offshore trust also enables greater offshore asset protection compared to what onshore trusts can provide. The offshore trust company or the trustee manages everything, and they are bound by the deed of trust to follow a set of rules and requirements. Offshore trust formation can ensure your financial security when it is time to retire. You can also use it to ensure enough funding for a future business or for your children’s education.

Once you have decided on offshore trust formation, you need to go over the types of trust offered in the country of your choice, learn the duration of that trust, and consider all the important decisions that must be made before entering an agreement. Some of the things you should consider include the trust being revocable or not, and whether it is discretionary. Likewise, you need to specify the expectations, duties, obligations, and rights of the trustee.

Crucial Steps to Consider Before an Offshore Company Formation

Offshore company formation will provide you with many benefits. To get the best results, you need to work with a trusted and reliable offshore company formation and registration service provider that is based in the country where you want to set up your company.

Here are the crucial steps you should consider before you proceed:

•    Think about your needs – Determine what structure you need, the number of people who will be part of it, and the offshore jurisdiction that fits the needs of your company.  Likewise, list down any additional services that you might require for your company, such as nominees and an offshore bank account.

•    Consider your options – Jurisdictions such as Seychelles, Belize, Anguilla, and the British Virgin Islands have become quite popular in the world of offshore company formation. Companies formed in these jurisdictions are referred to as IBCs (international business companies), which are similar to private limited companies. An IBC has a board of directors, share capital, and shares, except that the shares are not publicly traded. IBCs are generally exempted from taxes. This type of structure offers higher levels of privacy and confidentiality.

•    The other types of structures you can consider include private limited company and Limited Liability Company. The latter is not usually common in offshore jurisdictions, but it can be formed in countries like Panama and Belize. Private limited companies often provide tax exemptions or apply incredibly low tax rates, but when it comes to confidentiality, it’s hard to beat IBCs.

•    Get help – Contact a leading offshore company registration and formation service provider that provides its services in Seychelles and other offshore company jurisdictions. Make sure they are regulated and licensed professionals who have years of experience in helping businesses and individuals like yourself get started in offshore company formation.  The service provider will provide guidance and consultation, assist in drafting of the documents for company formation, and take care of the actual process of incorporation.