Wealth-Protection Strategies

The wealth you have should be protected from outsiders. Your ex-spouse, creditors, clients, or someone else may claim a stake in your wealth; hence, you need to follow specific strategies to protect it. A lawsuit or emergency may put a major portion of your wealth at risk. The more you own, the more you are at risk.

Companies and trusts

Companies and trusts can be powerful tools to protect your wealth. You can restructure your wealth under these legal entities. You can also use a company you own to buy assets and to make investments. You can control these assets but you will not be held personally liable if something unwanted happens.

Trusts can help you transfer your wealth over generations. Not all trusts offer wealthprotection. The living trust is a great tool for asset protection in some circumstances and it offers cost savings in some states; however, some states and federal tax laws consider the assets held within a living trust to be owned by the trust-maker. Consider this factor while using the living trust as a strategy to protect your wealth.

Diversification

Diversification is another powerful strategy to protect your wealth. Do not put all your eggs in one basket because one mistake can destroy all of your careful planning. You can distribute your wealth to various foundations, banks, trusts, and limited liability corporations

Offshore banking

Offshore bank accounts offer substantial wealth protection and confidentiality benefits. Offshore banks may charge zero or minimal taxes and they usually do not report their clients’ accounts. Luxembourg bank accounts have been a tax haven for over a hundred years.

Offshore investments

Offshore investing is an excellent option for a person to grow his or her wealth confidentially. These investments are not governed by the rules and regulations of U.S. jurisdictions. Many Americans prefer to make offshore investments in order to diversify their investment portfolios, spread their risks, and protect their wealth from lawsuits. Investment in an offshore company is free from U.S. tax rules because it is not a U.S. company. Offshore investments also increase the difficulty for creditors who are looking for ways to get their money back.