Offshore Trusts and U.S. Citizens

Using a lawful offshore trust to protect family wealth is especially important for U.S. citizens because it protects against:

  • Epidemic of litigation. The U.S. Is the world’s foremost playground for lawsuit predators.  If you are a U.S. citizen, everything you keep in your own name is up for grabs.  An international trust puts your assets beyond the reach of anyone who might consider suing you.
  • Financial isolation. Individual Americans are now uniquely unwelcome at banks, brokerage firms and insurance companies around the world.  In many cases, an offshore trust that an American establishes can overcome that problem.
  • Growing government debt. As issuer of the world’s reserve currency, the deeply in debt U.S. government may be tempted to impose currency controls, restrict exports of capital or interfere with gold ownership.  The wealth a U.S. person protects with an offshore trust would be beyond the reach of such measures.
  • High estate taxes. The U.S. imposes high taxes on estates.  The rate currently is 40% and has been as high as 55%.  Adding to the problem is that the government keeps changing tax rates and estate tax brackets.  Even if today it looks as though you’re not wealthy enough to be concerned about estate tax, next year you may be – because you’ve grown wealthier or because the rules have changed again.For an American, an offshore trust is a superior vehicle for estate planning, as explained at Gift and Estate Tax Treatment of a Model Offshore Trust.  And it is a permanent solution for the individual’s family, since the trust disconnects from the U.S. tax system after the lifetime of the Grantor.
  • An insatiable income tax system. Unlike citizens of nearly every other country in the world, a U.S. citizen is taxed on his worldwide income.  Short of renouncing citizenship, there is no way for a U.S. citizen to shake off the tax collector for himself.  However, you can do exactly that for your heirs, by funding an offshore trust that eventually will disconnect from the U.S. tax system.

The easiest and least expensive way to gain the safety of a lawful offshore trust is with the Passport Financial Offshore Trust Kit.

Learn More About the Passport Financial International Trust Kit

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