Already Did It.
If you’ve already done your estate planning homework, you probably don’t want toreopen the matter. But if you have a large estate, making that effort could save your heirs $2.2 million inestate tax.
They’ll Waste It.
The thought of your 16-year-old grandson touring America on a $50,000 motorcyclelikely does not live up to your highest hopes for posterity. Many wealthy individuals hold back frommaking gifts to younger generations because they don’t want to see the money wasted. Concern thatgifts would remove capital from the control of the family’s most astute investor and cunning financialmanager also discourages gifts. But such concerns are easily dealt with by using a trust. You can make agift to an irrevocable trust of which you are the trustee. The property escapes the reach of estate tax,but you continue to decide how the money is invested and when it turns into spendable cash for thebeneficiaries.
I Might Need It.
You don’t want to do such a thorough job of estate planning that you plan yourself intothe poorhouse. It’s pleasant to contemplate the financial head start you can provide for futuregenerations, but not if you see yourself at the margin of the picture signing up for food stamps.
Those are the four reasons the government is able to collect billions of dollars in otherwise avoidableestate taxes every year. There's a way to shrink every one of those reasons and keep your family fromeventually contributing to the government’s annual take: use an offshore trust. Here's what happenswhen you put an offshore trust at the center of your financial planning.
Haven’t Gotten to It.
For reasons I’ll touch on, an offshore trust is the optimal environment for estateplanning. But that’s really just a footnote.An offshore trust is a cornucopia of benefits you can enjoy
. It provides unbeatable protection foryour assets – protection from aggressive lawsuits, protection from lightning asset seizures andprotection from the possible gold confiscation and currency controls that have many investors worried.It gives you entry to all types of foreign financial institutions, most of which no longer want to dealdirectly with Americans. That means more and better opportunities for profit and for truly effectivediversification, and it means access to tax-efficient investment products you can’t get in the U.S.Because those benefits begin right from the start, they counter the psychology of procrastination. Andonce you’ve established an offshore trust to gain those benefits, it only takes about 5 minutes of yourattention to use the trust to capture the $5 million advantage I’ve been discussing.
Already Did It.
An offshore trust can accommodate every estate-planning strategy your lawyer has toldyou about. You won't need to reinvent your estate plan, you'll just need to relocate it. And while you'redoing so, you can bring it up to date to exploit the opportunity that was handed to you by the 2010 TaxAct.Moving your estate plan offshore achieves an additional, highly attractive advantage. After your lifetime,the trust completely disconnects from the U.S. tax system. Distributions to your survivors will be