Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
The Five-Million-Dollar Reason for Going Offshore

The Five-Million-Dollar Reason for Going Offshore

Ratings: (0)|Views: 111|Likes:
Published by TravisGrier1
Terry Coxon, co-editor of The Casey Report, is president of Passport Financial, Inc., and for over 30 years has advised clients on legal ways to internationalize their assets to optimize tax, wealth protection and estate planning goals. Read here how you can take advantage of a U.S. tax act and save a lot of mone in the process…
http://www.whatisgold.net
Terry Coxon, co-editor of The Casey Report, is president of Passport Financial, Inc., and for over 30 years has advised clients on legal ways to internationalize their assets to optimize tax, wealth protection and estate planning goals. Read here how you can take advantage of a U.S. tax act and save a lot of mone in the process…
http://www.whatisgold.net

More info:

Categories:Business/Law, Finance
Published by: TravisGrier1 on Apr 06, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/11/2013

pdf

text

original

 
TRAVIS GRIER
The Five-Million-Dollar Reason for GoingOffshore
4/6/2011
 
The Five-Million-Dollar Reason for Going Offshore
 
, Senior Editor/EconomistBy Terry Coxon, The Casey Report
Terry Coxon, co-editor of The Casey Report, is president of Passport Financial, Inc., and for over 30 yearshas advised clients on legal ways to internationalize their assets to optimize tax, wealth protection and estate planning goals. Read here how you can take advantage of a U.S. tax act and save a lot of money in the process…
Just when you thought there was nothing more the U.S. government could do to motivate you to shipyour financial life offshore, they came up with another one. And if you have a sizeable net worth, it’s abig one; you could save your family $2.2 million in taxes by acting on the opportunity during the next 21months. A husband-and-wife effort could save twice as much.Included in the 2010 Tax Act passed by Congress late last year are gift and estate tax rules that applyonly in 2011 and 2012. Compared to the rules they replaced, and compared to the rules that will takeeffect in 2013, they are especially permissive. The tax savings come from exploiting those interim rulesbefore they expire.For this year and next, you are granted a $5 million exemption from gift tax. If your bank account canhandle it, you could write a check today for $5 million to someone in the next generation and incur nogift tax.But it’s a use-it-or-lose-it opportunity. Starting in 2013, the exemption from gift and estate tax drops to$1 million, and the top tax rate on gifts and estates rises to 55%. (That’s substantially a reversion to therules in effect in 2002.) So if you do nothing, you lose a free opportunity to reduce your taxable estateby a net amount of $4 million – which, at a 55% tax rate, means your family loses an opportunity toavoid $2.2 million in estate tax.
Impediments
Estate tax has always been an avoidable levy. Regardless of the level of wealth, for those who plannedwell and planned early, the tax eventually incurred was trivial. The 2010 Tax Act doesn’t change thatfact, it just makes it easier, until the end of next year, to exploit the fact. Even so, most people will letthe $5 million opportunity slip by, as people always do with estate-tax saving opportunities. Because Ihope you won't be one of them, let’s look at the practical impediments to effective estate planning, thethings that get in the way and eventually cost the survivors so much in unnecessary tax.
Haven’t Gotten to It.
Estate planning is not the kind of topic that draws most people in. And it’sgenerally about the far future, so it’s easy to tell yourself there will be plenty of time to deal with it later.If that sounds like you, maybe the $5 million opportunity that Congress is offering for just the next 21months will spark some action.
 
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.
Offshore Solution
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
now 
. 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

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->