Should I structure with both offshore trust and a holding company?

[mnschwarz]

Hi guys,
I'm not sure if this is the correct place for this post, but I'm trying to figure out the best way to structure offshore for my needs. Currently I have a couple offshore companies which I was looking to structure under a holding company (already set up). My main goal is for estate planning purposes, followed by asset protection and of course taxes. I'm looking in to setting up a trust to hold my assets to achieve these goals.

My original plan was to have my main holding company own the shares of each of the smaller companies and the trust to own the shares of the holding company. I'm also now thinking about just having the trust own each company's shares directly however without the need for a holding company.

I am an Australian citizen however I am not a resident for tax purposes (resident in Panama) and currently pay no personal tax. The ultimate beneficiaries in the event of my death however would be Australian residents and might need some flexibility regarding taxes. For this reason I also considered having the holding company as the beneficiary so the ultimate beneficiaries in Australia had some flexibility of dividends to reduce tax.

What are the benefits of each approach? Or is there a better way I've missed? Thanks!

 

[lastchance]

You defiantly want to put a Trust on top of your offshore structure to protect all your assets and property. You may learn about the benefits of using a trust in your situation and how it can protect you researching a little on Google to find free books and publications around. You need to put a great amount of work into your research to understand all of it.

 

[mnschwarz]

Thanks lastchance. I'm definitely going to use a trust. My question is to which of the following is a better structure:
Trust > Holding company > Multiple Operating companies
Trust > Multiple Operating companies

 

[negon]

Trust paramount will help you achieve your goals. So the fund / trust combination that you can find more information about in the Mentor Group forums will work even better for larger setups. Only downside is the huge setup fee 8000+ euro in total.

 

[JohnLocke]

Thanks lastchance. I'm definitely going to use a trust. My question is to which of the following is a better structure:
Trust > Holding company > Multiple Operating companies
Trust > Multiple Operating companies

I would suggest, Trust > Holding company > Multiple Operating companies at any time. Much more flexible and secure if something should go wrong.

 

[mnschwarz]

Thanks Admin. Much appreciated.

 

[negon]

I would suggest, Trust > Holding company > Multiple Operating companies at any time. Much more flexible and secure if something should go wrong.

Any thoughts for jurisdictions and the best places to look?

 

[mnschwarz]

My holding company is in BVI. Trust jurisdiction or where to look I haven't settled on yet. I keep hearing that Cook Islands is the most highly recommended for asset protection but also the most expensive. I don't think I need the best of the best for asset protection so I was considering something in Nevis or Belize with a flight clause just in case.

 

[Cyrus05]

Can someone answer my stupid question, What is the use of a Holding company? Aside from the word Holding, anything specific? I'm quite curious why you need to hold it for some reason

 

[happyjohn]

Nevis or Belize with a flight clause just in case.

It may Work very well for your needs.

What is the use of a Holding company?

It's a Company Paramount in your Company structure holding the shares (and in certain cases the director) of a Trading Company. You move profits, dividends up to the holding to protect them there from creditors and lenders in case something goes wrong in the Trading Company.

 

[Cyrus05]

That's a really smart tactic happyjohn, moving your money to a Holding company is a good technique to protect it even more! I never knew that is even possible!