When planning for the future, you may want to consider opening an offshore trust to help protect your assets. Due to high taxes, many people with significant wealth are opening trusts in other countries to ensure their families inherit most of their money and property. If you are considering opening an offshore trust in Gibraltar, the Cayman Islands, or another country, here are some of the steps you need to take.
Select a Country
One of the first steps to opening an offshore trust is deciding in which country to open it. Many countries provide special incentives to get people to open trusts, including offering several types of tax benefits that are designed to let you keep more of the money you have worked so hard for all these years. There are several countries that offer these incentives, including Gibraltar, Mauritius, the Cayman Islands, and several others.
Select a Trust
There is more than one type of offshore trust that can be formed when you are ready to consider this type of asset protection. The three most common types of trusts you can open are:
- Discretionary Trusts
- Interest of Possession Trusts
- Accumulation and Maintenance Trusts
Basically, all three of these trusts allow you to pay little to no taxes on capital gains, inheritance, and income so you can keep more of your wealth for retirement or to pass along to your heirs. This keeps the government in your home country from claiming your money for taxes when you open an offshore trust to protect it.
Select an Advisor
After you have chosen the country for your offshore trust and decided what type of trust is best for your needs, you need to find some to help you establish the trust. Although you could hire a financial planner and an attorney on your own, there are many trust groups that will help you form a trust in countries like Gibraltar and make sure it is done legally. Then you can begin to transfer the money into the trust that you want to protect for yourself or for your heirs.
One of the Gibraltar companies that you might select can also provide other services in which you might be interested. They can help business owners with company formation to take advantage of business tax incentives that will allow you to keep more of the money you make, rather than pay it out in taxes. In addition, they can also provide the legal services you need when forming trusts or moving your company to Gibraltar, or for providing conveyancing services if you are purchasing property within the country.
If you want to prevent the government from eating into the money you have worked for all of your life, then you can open an offshore trust. This will allow you to keep more of your money to use for your retirement or to pass on to your heirs. A trust company can help you understand and open an offshore trust.