Foreign bank accounts are additions to many people who have asset protection plans. There are some protected funds available in the United States. People who create these accounts know that there are a few ways that a judgement creditor can learn about an offshore account. The creditor could review a financial statement and the person’s tax returns.
Set up your offshore savings accounts early
You must take proper care of the offshore savings accounts so that the assets are not on the balance sheet. The offshore account should not be in the name of the person who created the account. You have to minimize the exposure to creditors, so the account will not be reported to the IRS. You can avoid the risks if the account is set up before the trouble starts.
Many jurisdictions in Europe and the Caribbean offer people confidential, secure, bank accounts. Take your time when analyzing the different accounts. You do not want to put yourself in an uncomfortable position.
Things are being handled much differently since the days of the numbered Swiss bank accounts. Switzerland has faced criticism for its different scandals including money laundering. While Switzerland is no longer an option, you can still locate other countries in Europe with asset protection benefits. The European comission tries to crack down on these types of accounts. Facilitators will likely open a secret account. This person will try to make sure that all of the United States taxes are paid. They will also need a mandatory non disclosure letter from an attorney or a CPA.
Numbered account vs Bearer Accounts
You can choose between a bearer account and a numbered account. Numbered accounts normally require an initial deposit of at least $50,000. The person looking to open the account must head to Europe, talk to the facilitator and head to a European bank. You may need an attorney. The identity of the account holder is secretive under bank laws. The income may be taxed, even though there is no requirement in the foreign jurisdiction.
Bearer accounts require a $7,000 minimum initial deposit, along with fees for the facilitator. Money can only be withdrawn or deposited by a password and bank account book. You do not have to travel abroad. The interest rate is typically low but there is tax on the interest.
These accounts are generally anonymous, which is a huge asset. Please keep in mind that these bank accounts should not be set up to hide money, but just to possibly keep money away from creditors. So, if you are looking at safeguarding your money, consider these international banking solutions!
1 thought on “Foreign Bank Accounts Explained”
Unless you are super rich it is very hard to justify keeping $50,000 on a bank account at 2% interest in nowadays.
Perhaps an emergency fund only. One need to consider need of traveling to the foreign country. There might be unforeseen circumstances and it will make cost of keep an account there very very expensive.
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