When you are dealing with offshore accounts, there are multiple ways to keep track of the status of your assets. You certainly don’t want to ignore your offshore trust and assume that your money is safely kept, even though you can be reasonably assured that nothing is going to happen to the funds you transfer into an offshore account. First, if you have enough money to open such an account as a means of accruing more interest with fewer taxes affecting your net worth, you may require the monitoring service of a trained financial analyst, bookkeeper, or accountant.
After all, most people who opt to go through the process of opening offshore accounts have a lot to lose should they not proceed in a legal fashion. While there are too many laws and regulations on the use of offshore banks to shelter your assets, rest assured that there are financial lawyers who can lead you through the process unscathed. Second, choose a bank with a reputation. There are literally thousands of banks in hundreds of locations across the world ready to open offshore accounts for you. However, not all banks are equal.
It is important to verify the positive history of the financial institution through research, to determine the amount of anonymity provided you when you open the account, and to check into all policies regarding access to your account. Switzerland is probably the oldest and most popular location to open an offshore bank account. Their neutrality has kept them friendly to all nations and people, giving them the opportunity to spend more time developing high technology security systems for their financial institutions and processes instead of building an army. Banks in China and Hong Kong can also provide a great deal of anonymity. Finally, you’ll want to make sure to open the right kind of account in order to access the funds when needed while still securing them in the best way possible.
Find out why an offshore trust may perfectly suits to your needs. A trust cannot be taxed, as it is considered to belong to another individual, named in the trust, upon the death of the party currently paying into the account. You could also open money market, CD’s, savings account etc. that will not be taxed according to agreements between the foreign financial institutions and your Government. Again, it is best to consult with an expert lawyer on the matter to determine the best type of account for you to open based on your financial strategies and your need for accessibility. Opening an account offshore can help you save on taxes, but rest assured that this is NOT tax evasion.
It is a perfectly legal solution to avoid being penalized for holding too many liquid assets over a period of time. With your money offshore, you are able to spend or save it as you please with no penalties and complete cooperation from the foreign authorities, and barring the occurrence that you commit a crime involving monetary exchanges, the account cannot be accessed by your government, either.