These trusts offer asset protection for a variety of reasons, and they are gaining in popularity among savvy investors. Discover some of the key reasons to establish an offshore trust, and find out if this financial move is right for your future.
A big benefit of choosing a trust that is offshore rather than one located in your country or domicile is simply that these international trusts can help diversify your holdings.
While few people would keep all of their wealth in one bank account, or invest all of their money into the stock of a single company, many people still make the mistake of keeping their wealth within a single country.
If your primary objective is to safeguard and set aside certain assets for others in the future, then a trust is ideal. This allows you to protect assets and even cash for your child's education, your spouse's financial future or a particular charity that means a lot to you.
Many people who turn to trusts located offshore are simply concerned about the stability of their domestic banking systems or domestic government. While there is no way to predict the future, keeping some of your assets offshore might serve as a safety net to give you peace of mind no matter what happens in the years to come.
One of the more common reasons that individuals turn to offshore and international trusts is for the chance to reduce their tax burden in a completely legal way. This government-approved transfer of assets means that you may not have to pay capital gains taxes or even income taxes on the value of the earmarked assets, helping your holdings grow rather than stagnate over time.
It is clear that there are plenty of reasons for establishing an international or offshore trust.