WHY YOU SHOULD HAVE AN OFFSHORE BANK ACCOUNT? ARE THEY LEGAL? HOW DOES THIS RELATE TO HAVING A PRENUPTUAL AGREEMENT?
What is the best way to protect your assets from getting seized by the IRS, your x-wife or some greedy lawyer that wants a percentage of your assets? The answer is an offshore bank account.
If you look at the top 10 safest countries in the world to bank in, the USA was not even in this top ten list.
How good really is the [F.D.I.C.] Federal Deposit Insurance Corporation when just one big bank in the USA going broke could break the F.D.I.C.
The F.D.I.C. is supposed to insure up to 250,000 USD per account holder if a bank goes bankrupt but the reality is this is not the case.
As of June 30, 2011, the FDIC deposit insurance fund had a balance of only $3.9 billion to provide loss protection on $6.54 trillion of insured deposits. That means every $10,000 in deposits was protected by only $6 in reserves.
The FDIC has closed hundreds of banks since 2008 so the USA is not a safe place to bank.
If the FDIC reserves dry up, the taxpayers either have to kick in the funds by taxpayers but then this can cause a run on the banks and a great depression.
So is your money really safe in a bank in the USA or any other country that does not require a high level of liquid reserves for depositors.
Private offshore banking started as early as the 1600’s and yes, it is 100% legal as long as you comply with the reporting requirements in the country where you are living or if you are a U.S. citizen, the laws of the USA even if you do not live in the USA since the USA taxes its citizens and its residents on their worldwide income.
U.S. Green Card holders are still responsible for reporting their worldwide income taxes even if they have left the USA if the Green Cards have not legally been terminated and if tax forms are not filed, there is no statute of limitations where the U.S. IRS can go after you for back taxes, penalties and interest.
Why would someone want an offshore bank account? When you have statistics that show where 50% of marriages end in divorce, and a huge likelihood if you are a high net worth individual that your chances of getting sued sometime in your life are pretty high and through the roof if you live in the USA, this would be great reasons to have an offshore bank account.
I have seen many people go broke for not planning asset protection in advance. Just think about this for a minute. Would you invest into an investment where you knew there was a 50% chance that you would lose half the assets? Well this is what you are doing by getting married without a prenuptial agreement and an offshore bank account.
I might have some people that do not like me for saying this but you are downright foolish to get married if you do not have a rock-solid pre-nuptial agreement in place before you get married in the country where you have residency and this needs to be done by a good lawyer that knows what he is doing.
A prenuptial agreement should always be set up and DATED BEFORE THE MARRIAGE DATE IS SET and should be done even if you are broke when you get married. I have seen prenuptial agreements overturned in the USA because the marriage date and plans for the marriage was set before the signing of the prenuptial agreement.
The reason this can present a problem in a divorce settlement especially in the USA for a person setting up the prenuptial agreement is it can make it look as if the agreement was signed under pressure or duress if the date of the prenuptial was signed after the marriage date was set and there is a record of that.
You have to be really careful on this.
Jeff Bezos had to borrow money from his father to start Amazon.com. He started this business in his garage and when his marriage split up a good portion of his assets went to his spouse because he did not do any prenuptial planning in advance.
Even a good prenuptial agreement a lot of times will not be good enough. I have seen tons of prenups overturned in the courts because of infidelity, children born in the marriage, or not making sure the other spouse was represented by his or her own lawyer before signing a prenuptial agreement.
Prenuptials do not work if you put assets in a joint bank or brokerage account with your spouse because those assets are owned by the two of you now.
If your fiancé will not pay for a lawyer to represent himself or herself with a prenuptial agreement, pay for it yourself or don’t get married. It will be worth it!
You also need another wall if the prenuptial agreement is overturned in the courts. Remember a prenuptial agreement pertains to money you own in your own name not money you do not own like assets owned by an offshore corporation whose shares are owned 100% by an offshore trust.
The best second wall if the prenuptial agreement is overturned by a judge is an offshore bank account with an offshore corporation where 100% of the shares are owned by a trust that is in a jurisdiction that has a zero statute of limitation period on law suits.
There is only one country in the world that I know of that has a zero statute of limitations on law suits and that is the country of Belize in Central America.
Asset protection is like buying insurance. You need asset protection before you have a problem and not when you have the problem because doing so when you have the problem is called fraudulent conveyance.
I have never seen where the Belize Courts have acknowledged any fraudulent conveyance [in other words you trying to set up the bank account with a Belize Trust or an offshore corporation owned by a Belize Trust when you have a problem or you see the problem on the horizon] because Belize Trusts or corporate structures owned by Belize Trusts have a zero statute of limitation which means once set up there is no window to sue in the Belize Courts.
That being said you are foolish to wait until you see a problem coming or the problem is already on top of you before you do any asset protection planning because if you are in the country where the problem is and fraudulent conveyance has been proven on your part, your local government authorities can hold you in contempt if the money is given over and throw your ass in jail regardless of the Belize laws if you are still in the USA or the country you have the problem in.
DON’T PUSH THIS SITUATION TO THE LIMIT.PLAN IN ADVANCE!!
Remember, even if your assets are in Switzerland and the entity that owns these assets is in Belize which is the Belize Trust or the Belize IBC that is owned by the Belize Trust, the individual or the government organization trying to do the suing has to sue in the courts where the owner is located which is in Belize.
You should NOT be putting a lot of money in Belize Banks. In fact, I would avoid the banks there.
There were only four banks in the world that had a AAA rating with Fitch in 2018 and three were in Germany and one was in Switzerland.
Singapore is another great place where bank failure is almost non-existent and all of the banks there are rock solid. The regulator MAS [Monitory Authority of Singapore] is very strict on their banks. MAS will fine the banks for almost anything so a strong rein is kept on these banks.
When someone tries to sue you and the ownership of the assets that you use to own are now owned by a Belize Trust and these assets are in an offshore bank or brokerage company in either Switzerland or Singapore it is virtually impossible for a creditor to get to those assets.
For a creditor to sue for those assets they would have to file a suit in the Belize Courts because that is where the [Belize entity] owner is located. Belize will not accept foreign judgements outside Belize and since there is a zero statute of limitation period to even file the law suit in a Belize Court, no filings will be accepted in the courts of Belize either.
Belize does have money laundering laws so we are talking about protecting money you have made legally and not illegally.
Offshore Banks also offer you more options to invest in other currencies like the Euro, British Pound, Hong Kong Dollar, Singapore Dollar, Canadian Dollar, Australian Dollar and many other currencies that can go way up or stabilize when the dollar crashes thereby diversifying your money better.
Maximum diversification begins by investing in the three c’s. Invest in different countries, currencies and companies to get the maximum diversification on your money.
Singapore has rock solid banks and some of the highest reserve requirements in the world.
In Singapore for the DBS, OCBC and UOB banking groups, the LCR requirement commenced on 1 January 2015, aligned with the Basel timeline. The Big 3 banking groups have been required to meet the Singapore Dollar LCR at 100% all time and all-currency LCR at 60% by 1 January 2015, rising by 10% each year to reach 100% by 1 January 2019.
My suggestion would be to set up a foreign offshore bank account and get at least some of your money outside the U.S. Dollar. There are so many banks that are far safer than U.S. Banks.
The USA is technically a broke nation with a current debt of 22 trillion U.S. Dollars which will never be paid off.
Governments, especially the USA government, have been known to seize money and then ask questions later and this is why you need to set up a foreign offshore bank account.
Most of your assets should always be outside the country where you are residing and working for asset protection purposes.
CD rates with some banks offshore pay 10% or much higher and if these currencies are bought with a CD at the right time you can get the movement of the currency on top of the interest against the U.S. Dollar.
As far as cost goes it is a lot more economical to go with an offshore discount broker than an offshore bank to invest in equities, currencies and other investments.
A lot of foreign banks charge safe custody fees that can be 12 basis points or higher [.12%] and this charge is based on total assets in the account minus cash.
These are fees just to hold your funds there and then you have fees to buy and sell securities and some charge to automatically reinvest the dividends and then you have expensive currency exchange fee markups and commissions on each currency exchange transaction.
When you retain our company, we will direct you to the safest banks and discount brokers with the lowest fees and how to avoid most of these charges.
High fees can cost you 1000’s or 10’s of 1000’s of U.S. Dollars over a period of years and we will show you how to get around them.
We make nothing off what or where you invest in equities through the banks or discount brokers.
We work with everyone differently depending on what your goals are and what you want to do offshore.
A Belize Offshore corporation as a holding company for investments for asset protection purposes might be good for one person but not if you are going to set up a business. For business purposes you would be better off setting up a St. Kitts Company or a Hong Kong Company depending on a lot of different circumstances. We will help you decide which way is the best way to go depending on your goals.
The U.S. Government passed a law called FATCA [Foreign Account Tax Compliance Act] The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law requiring all non-U.S. foreign financial institutions (FFIs) to search their records for customers with indicia of U.S.-person status, being indications in records of a U.S. place of birth, prior residency, or similar, and to report the assets and identities of such persons to the U.S. Department of the Treasury. FATCA also requires such persons to self-report their non-U.S. financial assets annually to the Internal Revenue Service (IRS) on form 8938, which is in addition to the older and further redundant requirement to self-report them annually to the Financial Crimes Enforcement Network (FinCEN) on form 114 (also known as ‘FBAR’). Like U.S. income tax law, FATCA applies to U.S. residents and also to U.S. citizens and green card holders residing in other countries.
All banks have to comply with FATCA to deal in the U.S. Dollar and to deal with U.S. Citizens.
Twenty to thirty years ago most offshore banks would take U.S. Citizens but that number has reduced by at least 50% -75% and most offshore discount brokers will not deal with U.S. Citizens anymore. Once you get an account set up, I have never seen them require you to close the account if their rules change with the bank.
If you are thinking about doing this, I would not put it off any longer.
If you are a U.S. Citizen or Green Card Holder and you want to get around all these filing problems you need to relinquish your U.S. Citizenship or give up your Green Card if a permanent resident.
Can you set up an offshore bank account yourself? Yes, but you will not know which one is the best for what you are trying to accomplish or the location to do it in and we can show you the ones with the lowest fees where the privacy is better.
Our goal is to help you save more by cutting your taxes to the brim and making you more money.
When you retain our company, we will show you how to save on these areas.