Offshore Assets

Offshore Assets:

Offshore assets strategies typically include the use of offshore trusts and other entities. Normally articles and studies concerning offshore assets trusts have focused on their use for asset protection. However another, very important, use of a certain type of offshore trust, is to effect estate tax savings. Any future growth in asset values will escape US federal estate taxation, thus increasing the amounts received by children and other beneficiaries.

There are many offshore assets freezing techniques in use today, so a little background check may be needed to find a suitable offshore assets attorney to make sure you are getting the best advice. Offshore annuities provide a wider variety of investment options. In general, US variable annuity contracts limit the investment of the monies to mutual funds, often limited to those offered by the insurance company that issued the contract. The investments must be adequately diversified and the owner may not possess investor control.

A carefully selected offshore assets annuity provides more investment options. The investment must be diversified and held in a segregated account. If not, the owner will lose the tax deferral altogether and be taxed currently on all income earned under the contract. With offshore assets annuities, the internal investment is not derived from a menu supplied by the issuer, the estimated investment returns are not quoted - they are variable.