Dear ,

If you seek improved asset protection and truth about safe and tax compliant planning options for global diversification (i.e. offshore), you've come to the right place. Here at Invest Offshore the regulated asset protection structure (RAPS) is presented to you, from trusted, knowledgeable and competent advisors.

Our objective is very simple: We provide actionable information on government regulated, registered and recognized foreign pension funds, investment accounts and/or brokerage accounts.

The primary reason to go offshore is SAFETY. The clients and groups we work with, almost entirely, are focused on mitigating US-centric litigation risk and political risk. That is where jurisdictional diversification can make a huge difference. The benefits of offshore diversification are substantial. There are many legitimate reasons for maintaining a portion of one’s wealth abroad. And contrary to popular opinion, the primary reason is not to save on taxes. In fact, there are plenty of tax shelters available in the US.

No other country is plagued with the level of litigation that America faces. Nine out of ten lawsuits filed worldwide are filed in the US. The US tax code is so convoluted and extensive that even the highest paid and most qualified tax attorney in America can hardly ever give you a straight yes or no answer when asked for tax advice.

A Foreign Investment Account Adds Additional Asset Protection

Asset protection means making yourself an unattractive target for a lawsuit and making it difficult for an attacker to collect if he wins. An Ordinary IRA /401(k) helps on both accounts; your IRA with a foreign investment account can be an even bigger help.

LIMITED PROTECTION

Under Federal bankruptcy law up to one million in your IRA is legally exempt from the claims of your creditors to the extent that you need the money for your support in retirement. Some state laws provide additional exemption. That gives you a substantial measure of protection, but how substantial? The uncertainty comes partly from the elasticity of the concept of “need.” If the question of how much you really need ever comes up in the concept of litigation, it will be answered by a judge, based on whatever the judge wants to base the answer on.

BETTER PROTECTION

An IRA with a foreign investment account can add stronger protection. This foreign investment account is not accessible to anyone who wins a lawsuit against you (or for any other creditor)

So what would a court do if it determines that the value of your IRA exceeds your retirement needs and therefore is available to creditors? The only thing it is likely to do is to order the IRA Trustee to pay your creditor part of the amount it otherwise would pay you. The outcome of that is uncertain.

WAITING GAME

It reduces the risk of being sued in the first place. The first question a plaintiff's lawyer asks himself is “IF we win, how do we collect?” When the answer is “no way” or even “no easy, quick way,” plans for suing are often abandoned.

To set this up: Your IRA custodian transfers your money to your foreign investment account without tax consequence.

Request a private consultation.

The US government’s combat against offshore tax havens has actually led to an increase in demand by America’s Ultra High Net Worth Individuals (UHNWIs) for avenues that afford higher wealth protection and reduced tax exposure. One of the most popular offshore asset protection products available is a Private Placement Variable Annuity, however the major downfall of these products is that legal entity ownership separate from custody is not possible in an offshore life insurance policy.

Issues with PPLI

• If you were clearly interested in deferring or eliminating income tax, with the intent to eventually be transferred to the next generation. Issue: Private Placement Variable Annuity does not avoid estate tax.
• Contrary to more complex offshore trust and corporate structures which provide no tax deferral benefits to capital, PPLI combines the benefits of tax efficiency, asset protection and global investment flexibility in one policy. Issue: The underlying investments are not yours, and never will be yours.
• In the U.S., life insurance has long offered opportunities for tax-free investment growth which means that the death benefit comes to you tax free. Issue: The assets are never freely available to you without cost or loss.
• Policyholders may access funds within those policies through loans and withdrawals usually without immediate tax consequences. It's a return of your premium under first in first out rules which means that there is no tax consequence. Issue: It's the money that you've already paid tax on.
• Monitoring process is in place. The two major IRS rules relate to diversification and investor control. Issue: once a failed it is always failed. (Can't be fixed).
• Owned by the insurance company and not by the policyholder or related persons. Issue: All the policyholders has is an illiquid contract.
• One frequently employed route is to use insurance dedicated funds (IDFs) which are established for the exclusive use of variable contracts issued by insurance companies and are not available to the general public. Issue: your investment choice is restricted, restrained and has blockage.
• PPLIs offer higher potential returns then a whole life insurance policy. Lower premiums translate into higher returns for policyholders. Issue: lowest premiums are found in U.S. stitus status life insurance companies.

What does the IRS have to say about PPLI?

The IRS has established strict rules that apply to life insurance policies, and additional rules that apply to PPLI policies. Failure to adhere to these rules will negate the potential tax benefits of the policy.

Issue: with an offshore insurance company which has no state regulator of life insurance policies you are constantly at risk.

Request the 402(b) Asset Protection White paper.

Occupational retirement plans are registered as FATCA exempt on reporting and withholding and IRS Recognized Tax Deferred

Individual tax reporting is streamlined and simplified making for a DIY (do it yourself) filing.

By government and governance recognized

• FATCA
• DTAs
• TIEAs
• GATCA
• O.E.C.D.
• Common Reporting Standard

Off the Shelf Domestic plans just don’t work, also they have built-in participation requirements and Funding limits.

We achieve tax compliance at both the institutional and individual level and most importantly Pension law overrides tax law and securities law.

Request a private presentation.

Offshore wealth diversification, defined as assets deposited somewhere other than the investor’s home country, keeps rising, with Switzerland the most popular destination. Boston Consulting Group expects Switzerland to remain the largest single offshore center globally, with about 25% of total offshore wealth by the end of 2017. In particular, institutional investors and family offices look for the solidity of Switzerland.

Citizen transparency is certainly en vogue, and not just in America. So far, outright capital controls have not been levied and don’t appear to be visible on the horizon. However, watching all this, one wonders how far governments are willing to go, since as we see in the table below how much wealth in already offshore.

The US government’s combat against offshore tax havens has actually led to an increase in demand by America’s Ultra High Net Worth Individuals (UHNWIs) for avenues that afford higher wealth protection and reduced tax exposure. So, while the masses might be bamboozled into fearing offshore, rich American families look for safety overseas.

There are in excess of 1 million companies incorporated in Hong Kong. With the implementation of the Integrated Companies Registry Information System (ICRIS) on 28 February 2005, the new Companies Registry Electronic Search Services became available for checking company information. Numerous banks, stockbrokers and finance houses as well as all the major international legal and accounting firms are present in Hong Kong.

Hong Kong is also well-served by local secretarial, corporate management and trust companies, while there is an efficient, modern and dynamic banking system to assist the international business community.

How We Can Help You

We can incorporate a company with your choice of name and can also check the availability of names in advance. All companies are provided with a complete company kit that includes share certificates, 4 copies of the Articles of Association, statutory registers, common seal, company chop and a certificate of guarantee of quality.

Request more information about Hong Kong Corporate services.

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