Would an international LLC better protect my IRA than a domestic LLC?
Posted on Nov 9, 2015 4:25am PST
Yes. For stronger protection you should invest your retirement funds into
an international LLC. Your IRA will be better protected than if you invest
in a domestic LLC. Your retirement plan (IRA) would set up an international
LLC. Your IRA custodian would then invest your IRA funds into the international
LLC in exchange for the entire LLC membership. Then
no retirement funds are within the U.S., subject to creditor claims. Your
retirement account instead owns only the full membership interest in the
international LLC. This membership interest is subject only to the charging
order remedy. However, you can be the investment advisor and even a co-signatory
on the international LLC account,
until you have a judgment creditor. You can also safely reinvest your international
LLC's funds in U.S. investments. The U.S. courts cannot compel you
or your custodian to turn over the IRA funds because the international
LLC owns the funds, and an international manager controls the LLC. If
you have a substantial IRA that is unprotected by your state, then strongly
consider this international LLC strategy.
However, even with the international LLC-IRA you must comply with all IRA
rules because the IRA remains in full effect. All that has happened is
that the IRA’s sole asset now consists of the ownership of an international
LLC, which in turn, invests the LLC funds. But the funds itself are owned
by the international LLC managed by an international manager. Of course,
we have excellent custodians who can oversee this arrangement. And as
with the U.S.-based LLC, you can take your withdrawals from your international
LLC-IRA. You’ll experience no difference other than your IRA will
be fully protected against virtually all claims.