The universe of offshore tax planning and asset protection is large and complex. There is no "magic bullet" structures, but there are a variety of ways. The hallmark of a skilled practitioner is aware not only that all the available options, but also knowing when to use which option for a particular client. Swiss pensions should seek by all practitioners in significant tax and asset protection services to give to their customers.
For tax purposes, variableSwiss annuities provide a complete shift in the value of construction in the policy (similar to that of domestic bonds, which the reader is familiar). If a trust (as defined below) has been designated as a beneficiary of the policy, should the trust is a grantor trust for income tax. It should be noted that pensions do not take the advantage of the income tax deferral, what they are as original issue discount instruments for U.S. tax purposes. To maintainthe tax benefits of the policy owner should not be possible, just as the pension investments, but may designate a "third party" to investment advisers to make the investment.
Foreign pensions are not subject to U.S. tax reporting requirements of the rule with foreign bank accounts (U.S. Treasury Form TD F 90-22.1) are connected. Swiss annuities are not subject to the 1% excise tax on frequent purchases of foreign life insurance or annuities due to the double-led --Tax treaties signed by the United States and Switzerland in 1998.
Swiss law provides substantial asset protection for life insurance (including pensions). Swiss annuities are not subject to collection remedies against the owner of the policy are addressed and not as a part of the bankruptcy of the policy owner. Even if a foreign court, approved the equipment or other delivery of the policy, whether in bankruptcy or otherwise, a Swiss court will not issueone, at the direction of the task of politics to the creditor or the liquidator. Since Swiss insurers are not subject to the jurisdiction of a U.S. court, without an order from a Swiss court pensions are not reachable by creditors.
Even if bankruptcy proceedings are initiated against the policy holders in Switzerland, Swiss law provides that if the policy owner decided in the bankruptcy proceedings, the ownership of the policy automatically transfers to theBeneficiaries of the policy. Because the policy would no longer be an asset of the debtor, the creditors of the debtor is unable to reach it. Fraudulent transfer challenges would not be automatically transferred to the Swiss law.
The blanket protection granted to the pension under Swiss law only applies if the pension includes a fair policy beneficiary designation. Designation of a beneficiary, that the work must be either (i) an irrevocableBeneficiary designation without restriction as to the identity of the recipient, or (ii) a revocable beneficiary designation with the spouse or the offspring of the policy holder named as beneficiaries.
Revocable designations allow for greater flexibility. ) Spouses and descendants (children and grandchildren can be named as beneficiaries, while there is a pending collection action, and then removed as a beneficiary when the action collection. Irrevocable designations allow for sophisticated estate planning.
An irrevocable trust (preferably a grantor) can trust as the beneficiary of the policy to be determined. While this designation is irrevocable, the policy owner (who is also the founder) can the ability of the trust, trust beneficiaries to be exercised by the maintenance reserve the right to designate a power of attorney over death.
With proper planning, is to improve a Swiss pension or protection of an asset tax planning structure.
For more information on Swiss> Pensions and other offshore investment choices, visit the website of the author http://www.maximumassetprotection.com.
