Asset protection: how to protect your savings with offshore trust

Protect your assets via offshore trusts

This site Offshore ciitzen is aimed at those who already have assets aside or a company, and want some advice on how to protect themselves.

First of all, it is important to have multiple current accounts available to you (or the company). There is no advantage in retaining all the liquidity in an account only.

For example, if you have € 200,000 in liquidity (Already taxed and at your complete availability), there is no reason to keep it entirely in a current account. Already only the interbank deposit guarantee, which in Italy is only up to € 100,000, is a good reason to distribute your savings on more current accounts.

The same argument is valid if we consider other eventualities that – if we really want to protect our assets – we must never exclude but rather take into account.

For example if for any reason (maybe a lawsuit) a bank account is frozen, or if you are abroad and you need to withdraw cash in excess of the daily withdrawal limit you have on the individual account.

Or even if for a suspicious transaction (an online purchase, perhaps) with your credit card the issuer reserves to freeze your liquid assets on that account, creating many problems.

So you pay the taxes of your country of residence (if you do not want to pay, transfer yourself to a tax haven, but seriously) and distribute your liquidity on several current accounts and possibly in several different states.

Assets owned by a company

Another tip is to diversify your savings pool, concentrating a part in non-liquid assets such as real estate. Which in turn must be in the hands of a company you own.

To give a clear example: buy a house to make income, to lease so as to generate Cash Flow , and give this asset (or this share) in the hands of the company so that if they ever attack your personal assets, they will not be able to claim on the assets owned by this company.

Therefore, we are clear that we are talking about capital companies and not of people.

It is even better if you manage to structure a company abroad, which therefore allows you to reduce the incentive towards what is called Frivolous Lawsuit in English, that is, a lawsuit brought in for the sole purpose of disturbing you.

In other words, if your company is based in another country, it is clear that – on equal terms – those who intend to move legally against you are more discouraged because they are forced to turn to their country (eg Singapore), with all the difficulties of the case.

Let’s be clear, people go around stealing lipsticks in perfumery, who knows what they are willing to do if you have palatable assets!

It is therefore necessary to put in place all the practices to discourage those who intend to create problems for you only in the hope of taking away part of your savings. Property protection is therefore a priority.

There are no 100% magic solutions. But what I am telling you is to focus your attention on everything you can legally put in place to protect yourself.

Nobody can forbid a thief from stealing in your villa, but putting a sophisticated burglar alarm can be a good tool to discourage him.

What to do?

I try to summarize some salient points.

  • Having the residence in a tax haven , so as not to be taxed and have the freedom to dispose of the fruit of your work.
  • Owning an offshore company , that is, having a place in a different place from where you reside, so as to be able to discourage legal and similar causes as previously mentioned.
  • Obtain a double passport , so you can move freely to another country in case of difficulty;
  • Protect both your tangible and intangible assets . (Already only the location of your site’s servers can have a decisive impact)

These are just some suggestions, but already useful to put you in a condition of greater protection.

And mind you! It is not important that you are more or less paranoid or more or less confident that your savings are safe. That there is an objective fact that there is the possibility of being patrimonially or deprived of their savings is an objective fact.

And it is therefore necessary to activate all the necessary countermeasures, regardless of your convictions.

Transfer your liquidity

In terms of states worth knowingly to transfer their liquidity, there are: Dubai, Switzerland, Hong Kong, Singapore, Luxembourg, Cayman, Bermuda, etc … Stable countries with stable legislation, accustomed to moving large numbers.

In other words, the Togo bank is not exactly a good idea.

Another concept to be underlined – and of which I often find myself disinformation – is the exchange of information between states and / or banking institutions.

So if you move some of your savings to a foreign bank in the hope of escaping to the Italian tax authorities, know that you will not be in good waters. The interbank system knows your general position and therefore has the possibility to identify in which current accounts you have deposited sums. This sends your hope of disappearing into the eyes of the Italian government.

In conclusion

If you want to pay less taxes, the advice is to do as others. Moving really into a tax haven, like the United Arab Emirates.

Of course, always consult a lawyer, a tax planner and make your decisions only after receiving the assistance of a professional in the field. Do not rely on your beliefs, but on the facts.

As simple as that.

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