Business review

This is where offshore trusts enter the picture. Today’s business world is global, not localized by country. Thankfully, the governments of the world have not yet caught up to this fact, but they will soon. When they do, the opportunity to avoid tax liability will have passed. Now is the time to invest in offshore trusts.

What is a trust?
Usually, trusts are set up as a way to give family a means of support after the person who set up the trust is gone. There are many types of trusts, but the one that will protect your money is called a pure trust. A pure trust is one that is set up by one person, called the settler, in the care of another person, usually a bank, called the trustee. The money can only be collected by a third party, the beneficiary, and usually only under a particular set of circumstances.

So how exactly do offshore trusts protect you from creditors, banks, divorce settlements, law suits, and governments? And how does placing your money where it can’t be withdrawn help you to increase your wealth. The answers are really quite simple.

When you set up a pure trust, the trust becomes its own entity. Since you do not own the trust, creditors, accomplishing the goal of asset protection, cannot touch it. As its own entity, the trust only needs to pay taxes to the country in which it is established, and there are many countries that do not require tax payments at all, such as the Cayman Islands, Gibraltar, and Belize.

This explains how you have protected your assets. But how do you make money from this? Since the trust is its own entity, the trust itself can invest money into stocks and other money making opportunities in the country in which it was established or any other country. You can take the money that you are saving by not paying taxes, and put it into investments. These profits, in turn, revert to the trust, which cannot be touched by taxes. See how the wealth pyramid builds?

Unfortunately, as typically happens when government finally catches up with technology, new laws are to be passed soon in regards to foreign exchange and Ecommerce. These laws are to come first from the United States, but many other countries may soon follow suit. If you want to set up an offshore account to protect your assets, the time is now.

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Article Source: ArticlesBase.com - Establishing an Offshore Trust to Protect Your Assets