Three Tiers of Offshore Asset Protection

Introduction

• Importance of protecting assets as success increases.
• Most asset protection is domestic; focus here is on offshore protection.
• Nomad Capitalist steers towards offshore locations like the Cook Islands.

Three Types of Asset Protection

1. Offshore Assets in Your Own Name

   • Opening bank accounts in different countries (e.g., Georgia, Singapore, Switzerland).
   • Can involve bank accounts, brokerage accounts, or property.
   • Provides protection as money is not in the home country.

2. Company Structure

   • Setting up a holding company in a tax-neutral jurisdiction (e.g., British Virgin Islands).
   • Separates personal identity from assets; beneficial for estate tax purposes.
   • Example: Berkshire Hathaway as a holding company model.

3. Offshore Trusts

   • Trusts provide an additional layer of protection.
   • Assets managed by a trustee, not in personal control.
   • Common in locations like Cook Islands, involves annual maintenance costs.

Additional Considerations

• Asset Protection & Citizenship

  • Consider the legal implications of citizenship on asset protection.
  • Different jurisdictions offer varying levels of asset safety and privacy.

• Company Headquarters

  • Importance of selecting a tax-neutral, asset-respecting jurisdiction.
  • Examples include BVI, Cayman Islands, Hong Kong.

• Lifestyle and Growth

  • Choosing where to live for cultural compatibility and personal safety.
  • Growth opportunities in emerging markets.

• Bolt Holes

  • Alternative homes or bank accounts to escape adverse conditions.
  • Provides flexibility and security in uncertain times.

Strategic Asset Allocation

• Diversifying holdings in various jurisdictions to mitigate risk.
• Balancing personal assets, holding companies, and trusts based on net worth.

Conclusion

• Importance of a holistic asset protection plan.
• Nomad Capitalist offers comprehensive services for legal tax reduction, second citizenship, and asset protection.
• Encouragement to ethically fulfill legal obligations while protecting global assets.