The Major Myths About Offshore Asset Protection

One of the most reliable financial solutions for people who have money that they want to keep is offshore asset protection. The strategy involves putting your money overseas with countries that will protect it from anything from lawsuits to debt collectors. It allows more control over your fortune without violating any domestic laws.

Even though offshore asset protection is a widely-used financial solution, there are still many myths surrounding its use. These myths can leave people assuming the wrong things about what asset protection can help with, and this can lead to legal problems in the future. Here are a few such myths and the truth about offshore asset protection.

Myth #1: I Can Save on My Taxes with Asset Protection

Asset protection, domestic or overseas, is entirely different from tax calculation. While the move can help you send less money to the IRS, it should be noted that this is not a guarantee. In fact, you should be wary of anyone that tries to sell you offshore asset protection strategies as a tax reduction. Professionals understand that, while these two financial matters can overlap, one does not necessarily depend on the other.

Myth #2: I Can Avoid Lawsuits

While offshore asset protection can help protect your money in the event that you lose a lawsuit, the actual lawsuit itself can still go forward. There is not a financial practice in the world that is not immune to the interrogation and discretion of the court of law. Bringing forth charges is entirely different from getting charged and convicted.

Myth #3: Asset Protection is Illegal

Asset protection laws vary from state to state, but it is not an illegal practice. In fact, most asset protection companies have a team of lawyers on staff to ensure that the entire process is legal, viable, and that it accomplishes its goals. Combined with the expertise of accountants and financial experts who understand foreign asset protection laws and practices, offshore asset protection is a legal and competitive strategy for protecting your wealth.

Myth #4: Asset Insurance Can Be Acquired After I am Sued

Asset insurance can protect your money even further, but it cannot help you in cases that are already underway. When setting up your offshore asset protection, be sure to inquire about asset insurance. This may be an extra level of protection that you want, but no insurance company will cover you for any charge, lawsuit, or other legal action that is underway before you take out a policy. In fact, some will have a waiting period in place for how long before the policy will kick in.

Your hard-earned money can benefit from a viable and responsible offshore asset protection strategy. It can help keep you in control of your assets while keeping it away from people who may want to take it. That said, it’s important to understand what asset protection is and isn’t. With the right group, you can be confident that your asset protection strategy helps you keep your money under your control.

Esquire Group, a boutique international tax advisory firm specializing in tax consulting, tax planning and compliance and helping corporate and individual taxpayers with Offshore Voluntary Disclosure Program, asset protection, and US expat taxes. To learn more about us, visit www.EsquireGroup.Com/about.

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