The Offshore Advantage

274 Pages·1998·16.46 MB·English

by  Terry L. Neal

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MasterMedia Publishing Corp.
Copyright© 1998 TerryNeal
Allrightsreserved.
Nopartofthispublicationmaybereproducedinanyway
withouttheexpresspermissionofthepublisher.
Contact:
MasterMediaPublishingCorp.
822NWMurray Blvd.
Portland, OR 97229
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LibraryofCongressCataloging-in-PublicationData:
Neal,Terry, 1946-
Theoffshoreadvantage:privacy,assetprotection,taxshelters,
offshorebanking& investing/TerryNeal.
p. : em.
ISBN 1-57101-331-8
1.Taxshelters- Lawandlegislation- UnitedStates- Popular
works. 2. Taxhavens- UnitedStates I. Title
Kf6297.5.Z9N43 1999
343.7305'2044- dc21 98-40732
CIP
ManufacturedintheUnitedStatesofAmerica
Table of Contents
Foreword 6, Preface 8, Acknowledgments 11
Introduction 12
Section I The Problem
Chapter 1 GlobalThinking 17
Chapter2 The LegalThreatToYourAssets 27
Chapter3 FadingPrivacy 36
Chapter4 The U.S. Constitution 51
Chapter5 GovernmentOutOfControl 60
Chapter6 Money, Banking, & The Federal Reserve 68
Section II Decisive Information
Chapter7 OffshoreTrends 88
Chapter 8 FrequentlyAskedQuestions 103
Chapter9 FraudulentTransfers 110
Chapter 10 Offshore Private Banking 122
Chapter 11 ShouldYou Go Offshore? 131
Section III The Solution
Chapter 12 Offshore Strategies 142
Chapter 13 RegainingYourPrivacy 151
Chapter 14 Nevis, The New Financial Mecca 165
Chapter 15 The Nevada Option 171
Chapter 16 Offshore Directory 182
Epilogue 224
Section IV Appendices
Introductionto theAppendices 233
Appendix A-DisclaimerandReservation ofRights 235
Appendix B - Summary of U.S. Tax Rules Involving
Corporations, LLCs, Partnerships, andTrusts 236
Appendix C-Articles ofFreeEnterprise 250
Appendix D-ProtectYourAssets from Litigation 251
AppendixE -ConfidentialPurchase Order 252
Appendix F-AssetProtectionLawyers 254
Appendix G-Confidential ConsultationAgreement 255
Appendix H-BusinessTerms andAbbreviations 256
Foreword
ForovertwentyyearsIhavehelpedpeopletoachievetheirfinan
cial objectives by "going offshore" with their money. What did these
peoplehope to achieve?
Many wantedfinancial privacy,realizingthattheiraffairs werean
openbookherein theUnitedStates. Othersdesired solidlegalprotec
tion for their wealth, a financial fortress against lawsuits, ex-spouses,
governmental confiscation's and many other growing threats to their
financial security. Undoubtedly, many were looking to save or defer
taxes, admittedly a goal that is increasingly difficult to legitimately
achieve offshore, but nevertheless one that beckons those seeking the
few remaining loopholes. Lastly, we have seen a growing number of
Americans and other nationals who rightly believe they mustglobally
diversifytheirinvestmentsandwhohappilydiscoveredacornucopiaof
goodinvestmentopportunities.
These underscore afew ofthe many reasons there is such a mas
siveoutflowofmoneytosaferhavens. Unfortunately,italsohighlights
the fact that while the U.S. may still be apremier nation amongst na
tions, itis simply no longerthe safestplacefor yourwealth.
Whateveryourreasonsforexploringtheworldofoffshorefinance,
itcanindeedbetrickyterrainfortheuninitiated. That'swhyIamthrilled
thatTerryNealhas written The OffshoreAdvantage. Nooneknowsthe
ropes betterthan Terry Neal. TerryNeal brings to this book almost25
years ofexperienceintheoffshore arena. His firm OffshoreCorporate
Serviceshasprovidedefficient, knowledgeablefiduciary services toso
manyofmy offshore clients thatI canconfidently say thathe is truly a
masterofthe"insandouts"oftheoffshoreworld. The OffshoreAdvan
tage shares these secretsin amostinformativeand interestingway.
This is abookthatshouldbereadby anyone withconcerns about
money. Ifyou haveneverjourneyedabroadwithyourmoney, you will
learn how to take those important first steps. If you are a seasoned
foreign investor, you will find many new and betterways to maximize
the offshore advantage. Ifyou are aprofessional or financial advisor,
you will have at your fingertips precisely the information your clients
wantand need- andexpectyou to have.
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Foreword
Even ifyou have read a score ofbooks on offshore finance, you
will wanttoread The OffshoreAdvantage. Offshore strategies areever
changing. The laws, economic trends and opportunities change with
time,aswilltheconditionsofyourlife. Thisbook,withitsmanysound
ideascanbeyourblueprintforamorefinancially securefuturenowand
in the new millenium.
Arnold SGoldstein, JD, LLM, Ph.D.
AuthorofOffshore Havens and
How to ProtectYourMoney Offshore
7
Preface
IndependenceDay 1998myfamily andIwatchedthelargestJuly
4th fire works display on the U.S. West Coast from the motor yacht
Zarahemlaanchored in the ColumbiaRiver between Portland, Oregon
andVancouver, Washington. Threegenerations ofAmericans on board
thrilledtothemagnificentaerialdisplaythathascometocommemorate
ourcountry'sbirthday. SundaymorningJuly5thourchurchservicebe
gan with the singingof"GodBlessAmerica."Itendedas we stoodand
sang our national anthem "The Star Spangled Banner." These were
passionateeventsthatbroughttearstooureyesandmadeusfeeleverso
blessedtohavebeenborninthegreatestnationonearthandtobeapart
ofthisveryspecialcountrywhichwasfoundedonafreedomformedby
a visionary peopleto ensurethe inalienableright ofliberty for all.
Notwithstandingmy love andpassionfor this greatcountryIfear
foritsfuture. We are nolonger what wewere. I have discoveredfirst
handthatinformationandeducationcanbeeasilymanipulatedtoachieve
the objectives ofthose in power. Our free press, the cornerstone and
guardianofourliberty,haslargelybecomeatooloftheelite. Greedand
power have made the "Spinmeister" the ultimate professional for the
overlords ofAmerica.
Perhaps some ofthe information we will cover together may be
familiartoyou. Formost, thetruthcomesasashock. Youmaywonder
why this information is not common knowledge or why it isn't high
lighted in the media. The fact is that the truth is frequently overshad
owed by rhetoric. And it would appear that the major benefactors of
both ofAmerica's political partys' interests would not be well served
were some ofthesetruths openly and honestlyreviewed.
As to those inthe media, itis bestone keep inmind thatthey are
drivenbyadvertisers. OveraportionofmylifeIhavebeeninvolvedin
this industry and I write from some experience. Perhaps a small ex
ample may help to illustrate. I once had a discussion with a rather fa
mousproduceroftheinvestigativetelevisionprogramknownas"20-20."
He was in hotpursuit ofscandalous information for aprogramhe was
then producing. When discovering some really positive information
about the industry he was preparing to trash, and in response to my
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Preface
question as to whetheror not he would include itin his programming,
he said, -"Ifyou want good news buy advertising; scandal generates
ratings, good news is boring."
Thatcomment speaks volumes, butletmepose aquestion- Do
you think for, even an instant, that "20-20" or any other investigative
programwouldbeallowedtotrashtheadvertisersthatkeepthemonthe
air? Thereasonfortheirconcentrationonscandalislargelyanissueof
ratings. Higherratingsmeanadvertisers paymoreto gettheirmessage
outto viewers. Programmingis ratings and advertising driven.
Much ofwhat you're going to read in this book is not taught in
school, but it should be. Government must approve educational cur
riculum,andinstructionintruth,outsidethesciences,isnotalwayshelp
ful to those in power. There are few sources you can consult to learn
what is offered in these pages. My objective is that you gain new in
sights, understand what's going on, and use this information to your
considerablebenefit.
You may want to internalize a number offacts before your mind
willevenbeginto allow you to implementthecritical strategies neces
sary for you to secure your future in these tumultuous times. There is
goodnews in this book, butI would first like to present a summary of
somenegative informationfor youto consider:
Regarding Predatory Litigation
70% ofthe world's lawyers reside inthe U.S.
94% ofthe world's lawsuits are in the U.S.
Litigationoncommissionis illegal virtually everywhere in
the worldexceptthe U.S.
The US is graduatingrecord numbers oflawyers andthere
arenow more law students in school than in actualpractice.
Ifyouearn $50,000ormoreperannumyourchances are one
infour ofbeing caughtup in adversariallitigation next year.
Regarding Your Rights To Privacy
Privacy rights are virtually gone in the US. Your private bank
statements,phone logs,creditcardpurchases, brokerage state
ments, and so forth, are largely available to those who might
want to do you harm. And, ofcourse, any information about
yourpropertyholdings,leases,creditfinancing,creditinforma
tion and the like, is readily available. Predatory lawyers and
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