Comments on: Why Offshore Asset Protection?

By: marketiva

marketiva — Wed, 19 May 2010 05:44:13 +0000

Haha Great article, i hope can know much information About it!

By: BobbyCasey

BobbyCasey — Tue, 27 Apr 2010 13:36:17 +0000

Fred,
1, in jacob’s case, this particular scenario is tax neutral. US citizens are somewhat limited in what they can do to minimize taxation.
2, in jacob’s case, again, this is tax neutral. but for non-us citizens/residents, you would be taxed based on your residence and there are options for minimizing this based on where you live.
3, jacob could be the llc manager and this is likely the best option to reduce complexities with poa’s, etc. but paying rent is not a necessity.

By: Kelly

Kelly — Mon, 26 Apr 2010 22:01:09 +0000

Hallo from Sweden! I have found your domain on alltheweb. A+ content! Nancy D. Murphy x

By: Larry

Larry — Mon, 26 Apr 2010 07:22:29 +0000

Hallo from Sweden! I have found your domain on alltheweb. A+ content! Nancy D. Murphy x

By: Dennis

Dennis — Mon, 26 Apr 2010 06:00:02 +0000

Thank you for that nice and clear example.
1/ In Jacob’s case, the scheme seems to give him full protection. But is Jacob’s structure also efficient from a tax standpoint since Jacob lives in the US and is therefore taxed on his worlwide income?

2/ I understand you may have simplified the example above for clarity purposes, but based on what you said (stock trading account in Luxembourg, house owned by NV LLC, own business shares owned by a Belize entity, and everything actually owned by a Cook Islands trust), is the Luxembourg-based stock trading account efficient from a tax point of view? If in Luxembourg, I guess trading activity would be taxed. We may set up a Hong Kong company that would own the brokerage account (no capital gains tax in HK) and then use the recent treaty between HK and Luxembourg so dividends of the HK company can be remitted to Luxembourg tax-free. It of course implies that a Luxembourg entity would own the HK company.

3/ Last thing: in your example is Jacob manager of the NV LLC?
Does it mean Jacob pays a fictive rent to the LLC, as if he was renting the house to the NV LLC?

Thank you for your comments, Bobby. And in spite of my first name, I’d definitely try not to look like YOUR Fred…

By: Simon

Simon — Mon, 26 Apr 2010 04:39:51 +0000

I couldn’t understand some parts of this article, but I guess I only need to learn a bit more regarding this, because it certainly seems interesting and kind of though-proviking! By the way, how did you first get started with this?

By: Sam

Sam — Mon, 26 Apr 2010 03:19:31 +0000

I’m looking forward to getting more information about this topic, don’t worry about negative opinions.

By: Rick

Rick — Sun, 25 Apr 2010 00:13:13 +0000

Hallo from Sweden! I have found your domain on alltheweb. A+ content! Nancy D. Murphy x

By: LiENUS

LiENUS — Wed, 21 Apr 2010 04:22:52 +0000

I’m looking forward to getting more information about this topic, don’t worry about negative opinions.

By: Fred

Fred — Sat, 10 Apr 2010 08:53:16 +0000

3/ Last thing: in your example is Jacob manager of the NV LLC?
Does it mean Jacob pays a fictive rent to the LLC, as if he was renting the house to the NV LLC?

Thank you for your comments, Bobby. And in spite of my first name, I’d definitely try not to look like YOUR Fred…