Off shore accounts have been getting a pretty bad rap in the news media with the leaders of both America and Great Britain making multiple appearances to clearly establish that tax havens are just for the big corporations and illegal players seeking to evade taxes and engage in unlawful activities.
The attached article examines the possibility that there might be numerous legitimate and strategic reasons for American’s to hold assets in foreign jurisdictions and that so long as they comply with American tax law there is nothing illegal or immoral about such planning.
As you know, we try to bring you a variety of thoughtful pieces on issues involving asset protection planning and tax and estate planning. And, while the article entitled Off Shore Accounts a Necessity has a clear bias in favor of such planning, it is a great summary of the many reasons that ordinary and affluent Americans have and will continue to establish off shore banking relationships.
In these jurisdictions, the laws are such that even if a spurious lawsuit succeeds against you or your business, the process of collecting the judgment against the foreign held assets is so onerous that a plaintiff might decide not to appeal or to stop pursuing them.