Introduction to Offshore and Asset ProtectionAlthough many people may have heard the term "offshore," most do not know what it means, and have formed inaccurate impressions of the concept. The misunderstandings range from negative perceptions to a vague awareness of a system of personal finance accessible only to society’s most wealthy. This is the fault of offshore providers who have long promoted and maintained an image of offshore as unattainable for the average person. While this may create appeal in one way, it defeats its own purpose ultimately because it has discouraged many individuals from becoming educated about offshore, and from availing themselves of its benefits. Hatton Financial Inc. can assist in stripping away some of the mystery of offshore and asset protection, and explains how you may benefit from becoming structured in a foreign jurisdiction. Crudely defined, the term "offshore" is meant to refer to any country or jurisdiction, other than one’s own. Travel to another country often requires crossing a body of water, hence this foreign jurisdiction is said to be "offshore," because it is "off the shores" of one’s homeland. The reason offshore has become associated with the protection of wealth is because certain countries offer incentives and protections to foreigners, which they would not normally enjoy in their own countries. In the same way that it behooves an individual to secure cash in a bank rather than at home, it may benefit an individual to keep wealth offshore rather than in his home country. The irony is not to be overlooked. Instinctively, we keep what is valuable to us as close as possible. We want to maintain a sense of control over our valuables and feel that we can protect them. It is counterintuitive that a safer place for assets is a foreign jurisdiction, but that is precisely the case when the local climate of taxation and litigation makes it hazardous to keep wealth close at hand. When the home country’s atmosphere is threatening, and other jurisdictions protect against asset seizure and taxation, prudence demands relocation to the safer climate. While many people perceive that Western Hemisphere governments provide great protection to their citizenry, this protection does not come without an element of intrusion. When a government becomes intimately involved in the welfare of its citizens, a protective posture can quickly become an investigative one. For example, in most countries, there is no privacy with regard to bank accounts and corporate activities. Even the most law-abiding citizens may feel some discomfort in having to make blanket disclosures, if for no other reason than it feels like a violation. Although some individuals may not find such intrusion objectionable, many are prompted to move offshore when they are confronted with the economic reality associated with keeping such a government operational. That is, some people experience moral revulsion by having imposed upon them the responsibility of maintaining the public coffers. This is particularly true when the quality of government service is lacking in some cases, or excessive and wasteful in others. In terms of the cost to become structured offshore, interested parties need only consider the benefits of securing privacy, tax deferment on investments and asset protection for personal benefit and for the benefit of one's heirs. There is an initial cost, with small annual fees to follow thereafter. There are no hidden charges and every fee can be explained and demonstrated to have afforded the client a benefit. |