Escape From America, Sovereig Investor

7/28/2019 Escape From America, Sovereig Investor

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Escape From America

Te Sovereign Society 98 S.E. 6th Avenue, Suite 2Delray Beach, FL 33483 USA

USA oll Free el: (888) 358-8125

Contact: http://sovereignsociety.com/contact-us

Website: www.sovereignsociety.com

Copyright © 2011 by Te Sovereign Society. All international and domestic rights reserved.No part o this publication may be reproducedin any orm, printed or electronic, withoutprior written permission rom the publisher,Te Sovereign Society.



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Tree Asset Protection Secrets Every Investor Must Know

It’s no secret. Te U.S. economy is in crisis mode.

We are in a deadly game o “chicken” between the orces o recession and ination.

But panic is not the answer. I you have money to invest or protect, today, more than ever beore,you need a clear game plan.

Here we will reveal the top three asset protection secrets we eel you must know beore you investanother dime. Tese secrets will help you protect your wealth and prot in today’s volatile markets.

You’ll be able to diversiy their portolio by getting unparallel access to the global markets and inter-national currencies that you might not otherwise have access to - saely, easily and as tax eciently aspossible. In act, using these tips may very well be your only way to get into these global markets.

SECRET #1: Create a Gateway to a World o Profts

oday, the majority o investment opportunities are ound ofshore since international markets now makeup 57% o global stock market capitalization. And these oreign stock markets are growing much aster than markets in the U.S. — ofering greater total return potential. One o the easiest ways to access international investment opportunities in currencies or equities is by using an ofshore

bank account. With an ofshore bank account, you can invest in almost any security, anywhere in the world, that’straded on a major exchange. Tis includes not only common stocks, but also a growing list o oreignexchange traded unds (EFs), too. One o the other major benets o a oreign bank account isthat it allows you to maximize the long-term benets o international currency diversication getting your wealth out o the U.S. dollar.

As Easy as 1… 2… 3

In some ways, a private ofshore bank account is very similar to your U.S. brokerage account with a

ew notable and important exceptions. Your ofshore bank account ofers nearly unlimited access to the global market place. You can builda diversied international investment portolio in some o the saest havens in the world such asDenmark, Switzerland, Austria, Hong Kong and Singapore. Plus, you’ll have access to an investmentmanager at the bank who can buy any investment or you, including stocks, bonds and commodi-ties in any market, anywhere in the world denominated in any currency. Tese banks can also buy and store precious metals or you or you can opt to hold oreign currencies in a cash deposit account.Most o the banks have the ability to act as your investment consultant, should you so desire.



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Good private bankers are unique in that they have knowledge and understanding o their client’spersonal and business backgrounds, sources o wealth and how they want to use their private bank accounts. Tey also understand international clients and know how to meet their growing needs.

Te banking partners selected by Te Sovereign Society oten work U.S. hours, speak uent Englishand aim to help you accomplish your personalized goals, be it wealth accumulation or asset protec-

tion.

Ofshore banking services are oten handled by the private banking departments o ofshore commer-cial banks or by private banks that cater solely to a private banking clientele.

Havens, such as Switzerland, have been in this type o specialized banking or centuries and many other havens have been doing the same or decades. Only recently have some U.S. banks caught up with this trend, trolling or wealthy clients who demand personalized treatment. But they still havea long way to go when it comes to accessing international markets and currencies. Most stick withdollar-based investments in the U.S. markets.

In addition to the investment opportunities we mentioned above, o course an ofshore account o-

ers some asset protection.

People do not have to know you have assets ofshore…in act, we recommend you do not reveal thisinormation. However, there are situations when letting an opponent know just how dicult it willbe to reach your ofshore assets can deect a law suit or produce a settlement o a claim.

Te truth is you don’t need secrecy to protect your wealth against lawsuits. Should you end up incourt, you may have to disclose an ofshore account as part o a statement o your total assets andliabilities, but once your opponents realize that your money is thousands o miles away, they are ully aware o how dicult it will be to gain access. Tis actor alone can acilitate settlements out o courtand put an end to lengthy lawsuits. Either way, you win.

While selecting an ofshore bank account may sound exotic or even dicult, it is not i you have theright connections. You should check out the bank’s reputation, nancial condition, ees, services andrelated costs. Also, it’s important to understand the ee structure o these banks. For example, of-shore bank ees will be more expensive than what you pay at home but the opportunities they oferare worth it.

Banking Basics

One o the benets o ofshore accounts is their saety. Te Sovereign Society recommends banking in countries that have adopted solid policies to keep dirty money out o the system.

Under internationally accepted “know your customer” (KYC) policies, banks worldwide now re-quire customers to ully identiy themselves. Beore they open a new account or you, the bank mustknow who you are and will request documented proo regarding the source o the unds you plan todeposit.

For example, let’s say you sold your vacation home in urkey or the equivalent o US$210,000 andyou plan to deposit those unds in a private bank in Denmark. Te bank will require proo that themoney to be deposited comes rom the sale o a property. I you are unable to urnish this proo, they



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may reuse to open the account. Understand that they aren’t being dicult, nor are they reusing your business. It’s more a question o vigilance on their part about accepting suspicious unds andthis is what keeps your money sae in the long run.

The ABCs o Opening an Account

When applying or your account at a private bank, be prepared to supply the ollowing:

A detailed application — showing your name and address, type o account you wish to open,the currency in which you want your unds to be denominated, request or debit/credit card. osatisy KYC rules, you must prove your identity and nationality (usually with a notarized copy o your passport or certied birth certicate) and a utility bill to conrm your residential address.U.S. persons will be required to sign an IRS Form W-9 that lists your U.S. taxpayer identicationnumber and/or U.S. Social Security number. You may also be asked to sign a waiver o the coun-try’s bank secrecy laws.

Investor profle — A statement o your investment objectives, investment experience and the invest-

ment risk approach you preer.

Source o unds — Speciy the source o your unds and, in some cases, obtain a reerence letterrom a bank in your home country stipulation that the unds are legitimate.

Choose your benefciary — It is possible that in the event o death, your account and other relatedinormation will not be released to your loved ones without costly legal proceedings.

o avoid this, you must designate your spouse, partner or other person as an account beneciary.Tis designation is revocable, so you can always add a new beneciary or change beneciaries. Forbanks that don’t ofer this option, the alternative is to make your intended beneciary a co-owner o the account, which gives this beneciary survivorship rights in case o your death.

The Best Way to Fund Your Oshore Account

In the U.S., there is virtually no way that unds amounting to US$10,000 or more can be transerred without some ederal cash reporting law coming into play. By law, unds that amount or higher areautomatically reporting by electronic means to the U.S. reasury by the bank on which they aredrawn. Tis should not concern you because you should never move money ofshore or the purposeso avoiding legal reporting requirements or tax obligations. Tis is the wrong reason or moving yourunds to an ofshore location.

Still, a major concern or rst-time ofshore bank account clients and investors is: “How do I saely

and legally transer my cash and assets to my new bank?”

Wire — Wires are the easiest way to move unds to your ofshore bank rom your home country bank. However, not all U.S. banks are good at handling international wire transers and it may takeseveral days or the transer to be completed. When wiring money to your new ofshore account, youshould wire the money in your home country currency. When the unds arrive at the bank, you canopt to transer them to a diferent currency o your choice. In many cases, this can save you oreignexchange transaction ees.



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Check — Write a domestic check to move unds ofshore. However, please note that it can takemany days, i not weeks, or a oreign check to clear the ofshore banking system.

Cash — I you physically move cash o US$10,000 or more, you must le the appropriate orms with the IRS or the U.S. Customs and Border Protection Agency. In almost all instances, the bank or transerring agency will automatically le the orms or you. Failure to report this is a very seri-

ous matter: the cash can be conscated on the spot at the airport. Be aware, too, that this reporting requirement also applies to the transport o cash equivalents including traveler’s checks, bearer bondsand other negotiable securities. It may also apply to transporting precious metals, such as gold.

Because U.S. Customs agents can be arbitrary in their on the spot actions, we recommend againstcarrying large amounts o cash when crossing U.S. borders. Agents tend to conscate cash rst andleave proo o its legitimacy to later. Meanwhile you lose the cash and can incur legal costs to get itback.

In addition to the necessary U.S. reporting requirements regarding cash, most reputable ofshorebanks will not accept cash deposits; the reason being that they need to know the source o the unds.

Because cash is not easy to document, they just say no. Te days o investors arriving on a small Ca-ribbean air strip with a suitcase or two o cash are gone.

Important Notice: U.S. tax laws impose severe tax penalties on investments in oshore mutual unds, thus these types o investments are not recommended or purchase with your oshore bank account.

I you are a U.S. citizen or a U.S. resident alien, the existence o any “oreign nancial, securities orother nancial accounts” over which you have direct or indirect control, must be disclosed on yourannual IRS Income ax Form 1040, Schedule B, and reasury Form D F90-22.1 i, in aggregate,the accounts exceed US$10,000 in value at any time during a calendar year.

You must also report on your 1040 tax return any income generated by these accounts. Some otherhigh-tax countries do not specically require reporting o international accounts, but some ew dorequire residents to pay taxes on their worldwide income regardless o where they live, as does theUnited States.

SECRET #2: The Simplest Way to Create a Private and Protected

Home or Your Money

Financial transparency has reached new heights in the U.S., and so has the ease o access to your per-sonal data. Yet, there is a way you can legally lower your wealth prole while energizing your invest-ment portolio at the same time. And, best o all, implementing this simple strategy could cost you

less than a weekend getaway.

Tis strategy could be the answer to quick, afordable and exible asset protection… let me explain.Many times people want to control their assets, yet desire “lawsuit proo” asset protection. ypically,control and asset protection do not go hand in hand. And, just as oten, control reaks aren’t wellsuited to working with trustees. Tis usually means something has to give… but not necessarily.



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Have Your Cake and Eat it Too

By combining two o the most basic ofshore vehicles — and ofshore bank account and an ofshorelimited liability company (LLC) you can control your investment assets while beneting rom sub-stantial asset protection.

As you’ve read here many times, ofshore bank accounts are by ar one o the best ways to access theinternational markets and to diversiy outside o your home currency. Not to mention, having somemoney outside o the U.S. is a good way to recession proo your assets. However, in many cases,ofshore accounts may not give you as much asset protection as you may desire. Here’s why.

Let’s assume or a moment, that you have an ofshore account in your name. I you should lose a lawsuit, no matter how rivolous, and your creditors have a U.S. court order to attach your asset, thiscourt order would be presented to the ofshore bank. It is then up to the bank to decide i they wantto comply with the U.S. request or i they want to send the creditor packing. But, you can take thedecision out o their hands and back into your own.

By establishing an ofshore limited liability company (LLC), you could very easily open your ofshore

bank account in the name o the LLC. In this case you are immediately aforded substantially moreasset protection. Under a typical LLC statute, the owners — which are reerred to as “members” —are shielded rom the LLC’s debts, unless they armatively take responsibility or debt, as by giving a guarantee to a lender.

You see, an ofshore limited liability company is similar to a domestic limited liability company except that it is based ofshore, typically in a jurisdiction that provides maximum exibility and assetprotection, such Nevis or Panama.

Twice the Headache with Fewer Guarantees or your Creditors

Te government on the island o Nevis, (one hal o the Caribbean nation o St. Kitts-Nevus), hasenacted state-o-the-art limited liability company legislation and is one o our preerred jurisdictionsor ofshore LLCs.

From an asset protection perspective, the Nevis LLC assets are protected rom the creditors o itsmembers since these creditors have only one way to go ater the assets: a charging order.

Under Nevis law, the charging order is the exclusive remedy available to a creditor o a member o a Nevis LLC.

I you set up your Nevis LLC with a Nevis manager, it is virtually impossible or a U.S. creditor toobtain jurisdiction over the manager. And. even i a U.S. court orders the repatriation o assets in the

Nevis LLC, the Nevis manager would not be orced to comply. Te only option or the creditor is toattempt to re-litigate the claim in the Nevis which is one o the most unavorable jurisdictions in the world or rivolous litigation.

ake this and add the act that the creditor would need to post a bond in Nevis and hire local coun-sel just to have their argument heard. As you can imagine, the shear cost and headache would en-courage a creditor to seek an out o court settlement… or they might give up altogether!





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ing outside the United States. Tus, the U.S. buyer oten has to orm a oreign entity and must use anagent o that entity to purchase any oreign securities that are not registered in the United States.

Recently an alternative avenue has opened or U.S. persons to invest directly ofshore. Tis comesthrough a ew select ofshore banks and investment rms that have qualied as brokers under SECrules. Tis enables them to service U.S. persons and their investments in compliance with U.S. laws.

An alternative to the cost o creating a oreign legal entity is a oreign annuity contract, i the insur-ance company is willing to make the sale. Te oreign insurance company has access to a worldwidemarket o securities — including non-U.S. securities. Further, the oreign insurance company alsohas access to the best money managers in the world, many o which are not otherwise accessible toU.S. persons. Te annuity contract serves as a “wrapper” or the type o ofshore investments youdesignated.

Access to the World’s Best-Perorming Currencies

All U.S. annuity policies we’ve surveyed are denominated in the U.S. dollar, without exception. In

contrast, oreign insurance companies requently permit premium payments, withdrawals, borrow-ings and death benets in other currencies.

Long-term, currencies such as the Swiss ranc and the Japanese yen at times have more than tripledin value against the U.S. dollar in the past three decades.

I the U.S. dollar continues its long-term decline — as many analysts and currency specialists expect— then shrewd currency management could boost your annuity returns signicantly over the long run.

Indeed, within a variable annuity, it is possible to actually switch the currencies targeted by thepolicy. (Tis is easiest and most practical with a portolio o bonds.) For instance, you inorm the

insurance carrier or broker you wish to target Swiss-ranc-denominated investments instead o dollar-denominated investments.

Enhanced Asset Protection & Fully Compliant with Uncle Sam, Too

A variable annuity contract issued in the United States is segregated rom the other assets o the in-surance company and is not subject to the claims o the creditors o the insurance company or to theclaims o other policyholders. Tus, there is substantial protection to the policy owner rom misman-agement by the insurance company or economic hazards o the insurance business.

A ew oreign jurisdictions have similar arrangements with respect to variable contracts, including

Switzerland, Liechtenstein, the Cayman Islands, Bermuda and the Isle o Man.

Tere are some countries in which annuity or insurance contracts are additionally protected romcreditor claims i the policy has an irrevocable beneciary other than the policy owner. Te strongestasset protection is available or policies issued in Switzerland and Liechtenstein.

I a Swiss or Liechtenstein annuity contract includes a prescribed minimum amount o lie insurance(1% o the total premium or the option to annuitize), it is treated as a lie insurance contract underSwiss or Liechtenstein law. Tat means creditors can’t attach the contract. I the beneciary designa-



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tion is irrevocable, the beneciaries become the policy owners i there is a claim against the initialpolicy owner, or i that person declares bankruptcy. Te beneciary designation may be revocablei the beneciary is the spouse or a descendent (child, grandchild, etc.) o the policy owner withoutendangering this asset protected status.

Because U.S. investors are subject to tax on their worldwide income, it’s important that any ofshore

variable annuity you purchase be designed to qualiy as a variable annuity under tax Sections 72 and817 o the U.S. ax Code.

With the proper structure by the insurance company, the contract can qualiy as an annuity or U.S.tax purposes and the U.S. tax on the income earned on the cash value o the contract is deerreduntil distributed to the beneciary o the contract.

Another precaution you’ll want to take is to insure that the annuity policy doesn’t permit you to con-trol the investments held within the policy.

It’s okay to request the insurance company to invest your unds aggressively, conservatively or in a balanced portolio, but you are not permitted under IRS regulations to speciy the exact investments

the annuity should purchase. Similarly, while it’s permissible to request to have a specic investmentmanager oversee the annuity portolio, you may not assign the manager directly — the insurancecompany must do so.

o avoid a costly dispute with the IRS, obtain a written opinion rom a U.S. tax lawyer or tax ac-countant as to whether the variable annuity would qualiy as such under U.S. tax law. Sometimes theinsurance company or one o their agents will get a written opinion rom a U.S. law rm or account-ing rm and may be willing to pay the attendant legal ees. Other vendors preer not to appear tobe catering to the U.S. market and leave it to the investor to get an opinion rom a U.S. tax proes-sional.

Expatriation: The Ultimate Estate Plan

Marshall Langer, a distinguished author on asset protection issues, is one o the world’s leading inter-national tax lawyers. In explaining why expatriation is so attractive to wealthy Americans, Mr. Langerargues rom his own practical experience: “Expatriation is the ultimate estate plan.”

Admittedly, the concept o giving up your citizenship or that o another country sounds rather dras-tic, especially i you’re a patriotic American. But there’s at least one compelling reason to consider theidea: by giving up U.S. citizenship, you may be able to live or retire in a paradise o your choice andavoid all, or nearly all, U.S. taxes on personal and business income, including most capital gains andestate taxes.

In other words, you could pay nearly zero taxes – as in never having to pay taxes to the IRS again! TeUnited States is one o the only major countries that impose taxes based on citizenship alone. So, nomatter where you live, or where you earn your money, as long as you’re a U.S. citizen, (or a residentalien with a “green card”), the IRS is going to demand its share. Most other countries, however, only want to tax what you earn within their borders.

Bottom line: Unlike most other countries, a U.S. citizen cannot escape taxes by simply picking upand moving to another country.



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Path to Tax Freedom

Te only way to truly ree yoursel rom the IRS is by ormally surrendering your U.S. citizenship. And or many people, the cost-benet analysis o staying or ending citizenship may conclude that thecost o being a citizen in the United States is just too high.

Here’s some compelling math to consider: or the tax years 2010 and 2011, a wealthy American with an estate worth $5 million or more ... Te American’s estate might be orced to pay up to 35%ederal estate taxes on taxable assets greater than than the rst $5 million that is exempt. Te exemp-tion is $10 million per couple or husband an wie. And let’s not orget that the U.S. imposes capitalgains and income taxes on worldwide income.

Te brutal diference? Let’s compare that to a rich citizen o Te Bahamas. Citizens there pay zeroestate taxes. In addition, Te Bahamas has no capital gains taxes or income taxes on most ofshoreincome. Additional benets — the weather, gol, sailing, swimming, and shing are excellent yearround, bar an occasional hurricane or two.

Now that you know what the rules on this playing eld are, let’s talk about what it actually takes to

become an expatriate. One o the most important things to realize is that beore you surrender U.S.citizenship you must already be an ofcial citizen o another country .

Acquiring Dual Nationality

You may want to acquire a second citizenship, (also called “dual nationality”), even i you are notready to end U.S. citizenship immediately. Dual nationality occurs when a person is a citizen in twodiferent countries at the same time, and that dual status allows the person to hold and use two sepa-rate ocial passports. Please note that the U.S. Supreme Court has upheld the right o Americans toenjoy dual citizenship — and to end their U.S. citizenship i they so choose.

Obtaining citizenship in another country can be a prolonged process. aking steps to gain dualnationality early on can greatly speed the transition time i and when you decide to actually be-come an expatriate. And i you never decide to take that leap, there’s no harm in holding a secondcitizenship.

In considering dual citizenship, you should know that i you marry a spouse who is a citizen o a oreign nation, you may be able to acquire dual nationality through them.

A similar opportunity applies in the case o amily lineage. You could potentially have ties with an-other nation via your parents or grandparents, which could make you eligible or citizenship in theirnative country. Nations that may allow citizenship based on amily ties include Ireland, Italy, Poland,

and Lithuania.However, beore making any decision to act on obtaining citizenship, make sure you are comortable with the nation and would incur no negative obligations, such as military or national service require-ments.

I you have no pre-existing ties through marriage or amily lineage, then you may consider economiccitizenship which can be gained through certain investments, or citizenship by naturalization, whichis the ormal method o applying or, and being granted citizenship. Beore most countries grant



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naturalization they require actual residence in the country or three to ve years. Another point: inmany countries you don’t have to stay there all the time ater you gain your new citizenship.

I the worst comes to pass, you will be ready.

Here is a brie video on the easiest ways to gain citizenship.

Robert E. Bauman JDLegal Counsel, Te Sovereign Society

Editor’s Note: Members o the Sovereign Society’s highly qualied Council o Experts, can assist with your “ofshore” needs. Our careully chosen proessionals located in the United States and inselect tax and asset havens around the world have established careers o discovering the best globalinvestments, the saest tax havens and the most secure legal devices in which to protect your assets.

Access to the Sovereign Society’s Council o Experts is one o the most-cherished benets o ourmembers. Our global network o banks, investment specialists, nancial consultants, and legal pro-essionals have proven themselves, over many years, and to thousands o Sovereign Society members,as being the best in the business. o learn more about membership and how to escape high incometaxes, watch this ree video.

http://www.sovereignsociety.com/pages/svs/PassportBook0910Video.php?pub=SVS&code=WSVSM100



http://www.sovereignsociety.com/pages/svs/video/PassportVideo.php?pub=SVS&code=WSVSM418







Te Sovereign Society

98 S.E. 6th Avenue, Suite 2Delray Beach, FL 33483 USA

USA oll Free el: (888) 358-8125

Contact: http://sovereignsociety.com/contact-us

Website: www.sovereignsociety.com

Copyright © 2011 by Te Sovereign Society. All international and domestic rights reserved. No part o this publicationmay be reproduced in any orm, printed or electronic, without prior written permission rom the publisher, Te Sover-eign Society.

Notice: Tis publication is designed to provide accurate and authoritative inormation in regard to the subject mattercovered. It is sold and distributed with the understanding that the authors, publisher and sellers are not engaged in ren-dering legal, accounting or other proessional advice or service. I legal or other expert assistance is required, the serviceso a competent proessional advisor should be sought.

Te inormation and recommendations contained in this brochure have been compiled rom sources considered reliable.Employees, ocers, and directors o Te Sovereign Society do not receive ees or commissions or any recommendationso services or products in this brochure. Investment and other recommendations carry inherent risks. As no investmentrecommendation can be guaranteed, the Society takes no responsibility or any loss or inconvenience i one chooses toaccept them.

Any inormation or statements contained in this publication are not to be considered by the reader as personalized invest-ment advice. Te authors and any agents o Te Sovereign Society are not licensed under U.S. or other securities laws toaddress particular investment situations and nothing herein should be deemed as personalized investment advice.

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Escape From America, Sovereig Investor