Be very very careful when researching offshore

Be very very careful when researching offshore asset protection strategies.  There are sharks in these waters.  Lots of people with absolutely no professional credentials whatsoever have set up shop as self-appointed offshore asset protection gurus, and they'll happily give you advice on all sorts of things they have no real understanding of.

 

In general, there are two main benefits to moving assets offshore:  (i) you potentially make yourself look less wealthy than you are to someone who may want to go after you, and (ii) you remove your assets from an environment where they can be frozen with a simple phone call from a judge or regulatory agency.  However, if push comes to shove, and you are at all interested in not lying under oath, then your creditors may still be able to reach assets you hold offshore (by forcing you to hand those assets over to them).

 

Holding assets offshore typically does NOT reduce your U.S. income tax liability. The typical offshore asset protection structure is tax-neutral, which means that it doesn't change your U.S. tax position at all--you are still subject to tax on income from passive investments you hold offshore. However, there are certain offshore strategies that DO work to reduce or defer payment of U.S. tax, but these are specialized structures that must be designed by working with a U.S. tax attorney.

 

(Shark Spotting Mac notebook sleeve by Jet Metier, pictured.)