How do international financial centers (IFCs) protect wealth?
There are many reasons why international asset protection is so effective.
One reason, for example, is that international asset protection centers
don’t enforce U.S. judgments or judicial or administrative orders.
You thus gain jurisdictional immunity. Countries that won’t enforce U.S.
civil decrees are the countries we use for lawsuit protection. Since these countries
don’t recognize American judgments or civil decrees, the creditor
must re-litigate their case within that international jurisdiction. For
many reasons, this may be impractical or impossible. For instance, the
statute of limitations may have expired, or the country may not recognize
the type liability which is the basis for the lawsuit. These countries
also impose procedural obstacles to effectively blockade creditors and
litigation. Asset protection jurisdictions are debtor-friendly. They’re
in business to protect their customers’ wealth. Wealth protection
is what they sell. And they do it well.
Asset protection jurisdictions make their protective entities even
more protective than do other countries. International asset protection trusts,
limited liability companies, limited partnerships, foundations, captive
insurance companies, international business companies, hybrid companies
and various other entities, each provide considerably better protection
than do comparable U.S. entities. That’s why few judgment creditors
recover a defendant’s international wealth. Without their international
protection, many debtors would undoubtedly have lost their money. And
contrary to myth, it’s perfectly legal to invest and protect your
money internationally. Nor is it difficult or unsafe. But you must do
it correctly. For instance, you must comply with the IRS reporting requirements
and pay the taxes on your international earnings. You want to go international
either for creditor protection or to invest. You
don’t go international to save taxes. Most international protective arrangements
are tax-neutral and will neither reduce, defer nor increase your taxes.