VALENCIA, Calif., April 3, 2015 /PRNewswire/ -- Offshore banking is growing in leaps and bounds as both the rich and the not so rich look for safe places to stash their cash. They are doing it in record numbers and record amounts according to a recent Bloomberg News report, which said that as much as $32 trillion has been stuffed in offshore bank accounts. Of the world's 50 safest banks, according to Global Finance, not even one of the top 25 safest are in the United States. In fact, there were 45 banks outside of the US that were on the top 50 safest bank list and only five (5) headquartered inside the US, California based Asset Protection Planners reports.
"For most people, it is not only the objective of not paying taxes," says Philip Marcovici, a tax lawyer and board member a Lichtenstein wealth adviser. "It's the objective of obtaining the right to privacy and seeking financial confidentiality."
Asset protection from lawsuits is another major objective. E. Valdes, a firefighter located in Miami, Florida says, "I just don't trust the courts here. I want to set up an offshore account to protect myself from the unknown. Plus, if I can put my money in a safer bank than any of the local banks, I don't see why I shouldn't."
Mr. Valdes is not alone. The debt of nations can wreak havoc on its banking system and US is by far the most in-debt country in the world. The United States has over $18 trillion in debt. That is a little over $58,000 per citizen and an unsustainable 106% of its gross domestic product. China, on the other hand, the world's fifth (5th) most in-debt country, has $3 trillion in debt, which is just a little over $2,000 per citizen, or 37.5% of its GDP.
Where are the Safest Banks Located?
Regarding the safest banks, Canada has six (6) banks on the world's 50 safest banks list. The United States, which has nine (9) times as many people as Canada, has only five (5) banks on the list. Germany, which is about one-fourth (1/4) the size of the United states has six (6) banks on the world's safest banks list. The United States is almost fourteen (14) times bigger than Australia in population, yet the Aussies have four (4) banks showing, all of which are on the top half of the 50 safest banks list.
The top 10 safest banks are located in Germany, Switzerland, Germany, Germany, Netherlands, Netherlands, Germany, France, Luxembourg and France, in that order. Of the top 50 safest banks, zero (0) were in Africa, 15 were located in Asia, four (4) in Australia, 19 in Europe, 11 in North America and one (1) in South America.
Banks in jurisdictions such as Switzerland can also act as money management firms. They have expert financial advisors who work with their clients to invest funds in a combination of interest bearing and stock market investments that suit their clients' desires.
Who Has Offshore Accounts?
There are an estimated 26.2 million US citizens who have offshore bank accounts. Many of these individuals do not hold their bank accounts in their own names but in companies and/or trusts for enhanced protection from US litigation. Plus many foreign banks will not open personal accounts for US people, so a foreign corporation or LLC must be filed to hold title to the account.
Notice that this article has not yet breached the tax subject. US people are generally taxed on their worldwide income. So even though there are significant privacy and lawsuit deterrence benefits when combined with the proper legal tool, transparency with tax authorities just goes along with the territory. Better to sleep like a baby knowing your money is safe and sound offshore. At the same time, you don't have to worry about someone with a badge knocking at your door. It is as simple as filing a few tax and treasury forms and reporting the income offshore.
It is perfectly legal for a US person to have an offshore bank account. There are 5.195 trillion foreign trade dollars flying in and out of the US every year. So, the IRS is not concerned if you have a foreign account. They are concerned if you do not pay taxes on it.
By and large, an international account for a US person is tax-neutral. There are international entities, however, such as offshore captive insurance companies, under IRC 831(b), that may have significant tax advantages for many Americans. Check with a CPA experienced in this arena. (Pay special attention to the words "experienced in this arena.")
There are several providers who can assist individuals and business in establishing offshore bank accounts. Some include Offshore Company at www.OffshoreCompany.com (telephone 1-800-959-8819), Offshore Corporation at www.OffshoreCorporation.com and Asset Protection Planners at www.AssetProtectionPlanners.com.
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SOURCE Asset Protection Planners