Best asset protections options in 2024?

[johanmichel]

Hey folks,

I've been scrolling through this forum today, but I'm coming up short on answers.

What I'm after isn't a tax dodge.
The reason behind this quest is my autistic child, who might never land a solid job. I need to make sure he's taken care of for life.
If he ever hits financial trouble, I don't want some creditor sweeping in and emptying out the IBC/trust/foundation. I wanted to setup a family foundation in the current country where I live, but I don't like that when I put personal funds in it will cost me a big percentage when I want to withdraw later on.


I'm looking to set up a foundation, trust, or IBC (whichever's the simplest) that ticks a few boxes:

1. Shields my assets from any potential creditors.
2. Is easy to maintain.
3. Won't break the bank to set up or upkeep.
4. Won't trigger problems with tax services in my country of residence.
5. Is based in a stable country.
6. No withdrawing taxes

I've been eyeing up Seychelles and Belize for an IBC, but I'm not too keen on trusting their banks. Ideally, I'd stash the funds somewhere else, but I'm not sure if that still falls under the IBC's protection.

It's 2024, and it feels like navigating these waters without attracting immediate investigations, account blocking, and so on became almost impossible - even while not having committed any crime. Are there still solid options out there that won't cost me an arm, a leg, and my firstborn to set up?

 

[JustAnotherNomad]

This probably depends mostly on where you live. You should speak to an asset protection expert specializing in your country.
In the EU, as far as I know, the best option is a Liechtenstein foundation. Any other offshore setups don't work, as far as I know.
If you don't live in Europe, there may be more options.

 

[johanmichel]

This probably depends mostly on where you live. You should speak to an asset protection expert specializing in your country.
In the EU, as far as I know, the best option is a Liechtenstein foundation. Any other offshore setups don't work, as far as I know.
If you don't live in Europe, there may be more options.

Thanks for the reply, much appreciated!

I assume you mean it wouldn't work when I'm not using local banking? F.e. if I would use a Seychelles or Nevis foundation and get a bank account there (yes, I know it is hard nowaydays), I assume that account is fully covered right?

 

[JustAnotherNomad]

No, as in, your local courts and tax offices may not care about your Seychelles trust or whatever. They might simply say it's your own personal money, taxable, not protected against claims, etc.
So make sure you speak to someone who is competent.

 

[ProbRetarded]

M O N E R O .

 

[wellington]

Thanks for the reply, much appreciated!

I assume you mean it wouldn't work when I'm not using local banking? F.e. if I would use a Seychelles or Nevis foundation and get a bank account there (yes, I know it is hard nowaydays), I assume that account is fully covered right?

In the Seychelles to do a lawsuit you have to pay something like 250k i believe, that in respect would protect.

Where ever you put it with an autistic child and future autistic adult it becomes a little more difficult as someone will need to manage it and for certain they will take advantage.

What side of the spectrum are they? Have Asperger’s ?

 

[TheCryptoAnt]

4. Won't trigger problems with tax services in my country of residence.

Which is... ?

 

[jafo]

M O N E R O .

The reason behind this quest is my autistic child, who might never land a solid job. I need to make sure he's taken care of for life.

How is the child going to maintain and access this?

I'm hoping we can all learn a solution from you

 

[Sols]

There is no one-size-fits-all best option, especially in asset protection. Choose structure based on your needs.

In your case, if all you want is a nest egg for your child in the future, a simple trust or maybe a foundation might be sufficient. Isle of Man, Jersey, Guernsey, and Gibraltar have various laws and a long track record of proven of experience with these types of arrangements. You also have pretty good, predictable access to banking there.

You also have Cook Islands, Nevis, Samoa, Panama, South Dakota (and many other US states), Mauritius, and Seychelles that can be worth looking into.

Things get a little messy if you want to dip into the assets for your own gains. That creates a risk that the trust or foundation is seen as compromised or as a sham, i.e. it's not being used the way it was intended to be.

 

[johanmichel]

No, as in, your local courts and tax offices may not care about your Seychelles trust or whatever. They might simply say it's your own personal money, taxable, not protected against claims, etc.
So make sure you speak to someone who is competent.

Well, you seem competent in this subject =)

Isn't it true though that f.e. in Nevis they make it incredibly hard for a creditor to start a case? I believe the minimum they have to put up is $50K;

One last thing I was looking into was annuities. I absolutely dislike annuities, but it could cover my sons life for a certain amount of time. I

Which is... ?

Which is a bad standing with the tax services. I have nothing to hide, but you think it is a positive thing to be on their blacklist? It can do a lot of potential future harm.

How is the child going to maintain and access this?

I'm hoping we can all learn a solution from you

You mean Monero or the foundation? I was thinking of making him automatically a board member when he turns 18. But the question of course will be if he would be able to do things. My guess is he won't. So I need some trusted guardian.

In the Seychelles to do a lawsuit you have to pay something like 250k i believe, that in respect would protect.

Where ever you put it with an autistic child and future autistic adult it becomes a little more difficult as someone will need to manage it and for certain they will take advantage.

What side of the spectrum are they? Have Asperger’s ?

Not fully sure yet which side of the spectrum. He is an incredibly sweet child and smart in certain things. But, he is low functioning and I'm worried about his future.
I have enough funds to cover him for his whole life, but it needs to be in a very reliable way.

I was thinking today of setting up a LLC in Delaware or Nevada, but I believe it's not too beneficial tax-wise as a non-resident.

 

[JohnLocke]

I would say that there have already been many good suggestions in this thread, it seems like a great initiative you have started. Good for your autistic son if it succeeds.

In the end, you should speak with a local tax attorney about the solution you end up finding, you don't tell us much about where you live (country) or whether you care more about the price or a sensible structure. That makes it a bit difficult to get closer to a possible solution.

 

[jafo]

you should speak with a local tax attorney about the solution you end up finding

...who has a long successful legal career & proven solid record that is publicly verifiable with lots of client references!

 

[johanmichel]

I would say that there have already been many good suggestions in this thread, it seems like a great initiative you have started. Good for your autistic son if it succeeds.

In the end, you should speak with a local tax attorney about the solution you end up finding, you don't tell us much about where you live (country) or whether you care more about the price or a sensible structure. That makes it a bit difficult to get closer to a possible solution.

Yes, indeed. I highly appreciate all the helpful replies. Thanks!

 

[TheCryptoAnt]

Which is a bad standing with the tax services. I have nothing to hide, but you think it is a positive thing to be on their blacklist? It can do a lot of potential future harm.

no ese, I mean where do you live? Every country treats offshore companies differently, and trusts are not even recognized in over half of the world.

 

[JustAnotherNomad]

Well, you seem competent in this subject =)

Not really, but like @TheCryptoAnt mentioned, I know that not all structures are recognized everywhere.

Isn't it true though that f.e. in Nevis they make it incredibly hard for a creditor to start a case? I believe the minimum they have to put up is $50K;

Sure, but what use is that if your local court or tax authority doesn't care about Nevis? Say that there are assets in the EU (an apartment, or an expensive car), and they are owned by your Nevis foundation or Marshall Islands trust. And now someone sues you in your EU country, or the tax office says you owe them money.
If the court or tax authority then says "We don't give a damn about your Nevis foundation, that's all a sham, we know that it's really your stuff" and they simply seize the assets, what are you going to do? Or they say "We know that you have control over these funds, so you better hand them over - or else, you can think about how to give us access from a prison cell" - what are you going to do? That's the real risk.
If you live in Nevis and have all your assets there, it's a different situation, but as long as you live somewhere else, you have to make sure that your solution will be respected by the local authorities.

 

[JackAlabama]

Not really, but like @TheCryptoAnt mentioned, I know that not all structures are recognized everywhere.



Sure, but what use is that if your local court or tax authority doesn't care about Nevis? Say that there are assets in the EU (an apartment, or an expensive car), and they are owned by your Nevis foundation or Marshall Islands trust. And now someone sues you in your EU country, or the tax office says you owe them money.
If the court or tax authority then says "We don't give a damn about your Nevis foundation, that's all a sham, we know that it's really your stuff" and they simply seize the assets, what are you going to do? Or they say "We know that you have control over these funds, so you better hand them over - or else, you can think about how to give us access from a prison cell" - what are you going to do? That's the real risk.
If you live in Nevis and have all your assets there, it's a different situation, but as long as you live somewhere else, you have to make sure that your solution will be respected by the local authorities.

well in a world without rule of law (as indicated in your post), no paper contracts whatsoever will be honored, including stocks etc.
Only bearer assets are safe in such a scenario.

 

[JustAnotherNomad]

well in a world without rule of law (as indicated in your post),

That's nonsense. Of course there is rule of law in Europe, of course there are working setups for asset protection. There are family foundations even in EU countries, etc.
But you have to choose a structure that will be respected by your localcourts and authorities. You can't expect that a $2k setup from some random offshore island will stop the taxman in a high-tax Western country from going after you. It has to be set up correctly and there is a lot to be aware of - and you also wouldn't know what you don't know.
That's why it's important to work with an expert (law firm) that is competent and licensed for your jurisdiction. This is not something where you just google for half an hour and then pay $2k to some random offshore agent and you're set for life.

From what I have heard, for EU countries, a Liechtenstein foundation is usually the way to go. Because they are accepted by the EU, as Liechtenstein is an EEA member, not some random offshore island, but at the same time, Liechtenstein hasn't signed the Lugano Convention, so court orders from some other country aren't automatically binding in Liechtenstein, you have to fight the case in a Liechtenstein court. But there was also a case with a billionaire from... I think it was Israel? - who had set up such a foundation and who was scammed by the managers of the foundation, and there was nothing he could do, since he had signed over control to them. So as usual, you have to be careful.

 

[JackAlabama]

That's nonsense.

Not really, esp since 2020 your rule of law shows a lot of interesting twists and tweaks .

Of course there is rule of law in Europe, of course there are working setups for asset protection. There are family foundations even in EU countries, etc.
But you have to choose a structure that will be respected by your localcourts and authorities. You can't expect that a $2k setup from some random offshore island will stop the taxman in a high-tax Western country from going after you. It has to be set up correctly and there is a lot to be aware of - and you also wouldn't know what you don't know.
That's why it's important to work with an expert (law firm) that is competent and licensed for your jurisdiction. This is not something where you just google for half an hour and then pay $2k to some random offshore agent and you're set for life.

From what I have heard, for EU countries, a Liechtenstein foundation is usually the way to go. Because they are accepted by the EU, as Liechtenstein is an EEA member, not some random offshore island, but at the same time, Liechtenstein hasn't signed the Lugano Convention, so court orders from some other country aren't automatically binding in Liechtenstein, you have to fight the case in a Liechtenstein court. But there was also a case with a billionaire from... I think it was Israel? - who had set up such a foundation and who was scammed by the managers of the foundation, and there was nothing he could do, since he had signed over control to them. So as usual, you have to be careful.

many such cases. Good luck in front of a court in Liechtenstein, one can equally play bingo instead.

 

[NativeLogos]

That's nonsense. Of course there is rule of law in Europe, of course there are working setups for asset protection. There are family foundations even in EU countries, etc.
But you have to choose a structure that will be respected by your localcourts and authorities. You can't expect that a $2k setup from some random offshore island will stop the taxman in a high-tax Western country from going after you. It has to be set up correctly and there is a lot to be aware of - and you also wouldn't know what you don't know.
That's why it's important to work with an expert (law firm) that is competent and licensed for your jurisdiction. This is not something where you just google for half an hour and then pay $2k to some random offshore agent and you're set for life.

From what I have heard, for EU countries, a Liechtenstein foundation is usually the way to go. Because they are accepted by the EU, as Liechtenstein is an EEA member, not some random offshore island, but at the same time, Liechtenstein hasn't signed the Lugano Convention, so court orders from some other country aren't automatically binding in Liechtenstein, you have to fight the case in a Liechtenstein court. But there was also a case with a billionaire from... I think it was Israel? - who had set up such a foundation and who was scammed by the managers of the foundation, and there was nothing he could do, since he had signed over control to them. So as usual, you have to be careful.

Are there any reputable and recommended firms you know of that can help set up a Lichtenstein foundation?

 

[JohnLocke]

Are there any reputable and recommended firms you know of that can help set up a Lichtenstein foundation?

We have a few good one listed in this article below the page
https://www.offshorecorptalk.com/th...ormation-–-is-it-worth-your-time-money.37567/