HFI Financial

Keith L. Hatton, CFP, CLU, ChFC, TEP

Information

Introduction to Offshore and Asset Protection

Although many people may have heard the term "offshore," most do
not know what it means, and have formed inaccurate impressions
of the concept. The misunderstandings range from negative
perceptions to a vague awareness of a system of personal finance
accessible only to society’s most wealthy. This is the fault of
offshore providers who have long promoted and maintained an
image of offshore as unattainable for the average person. While this
may create appeal in one way, it defeats its own purpose ultimately
because it has discouraged many individuals from becoming
educated about offshore, and from availing themselves of its
benefits. Hatton Financial Inc. can assist in stripping away some of the mystery of offshore and asset protection, and explains how you may benefit from becoming structured in a foreign jurisdiction.

Crudely defined, the term "offshore" is meant to refer to any country
or jurisdiction, other than one’s own. Travel to another country often
requires crossing a body of water, hence this foreign jurisdiction is
said to be "offshore," because it is "off the shores" of one’s
homeland. The reason offshore has become associated with the
protection of wealth is because certain countries offer incentives
and protections to foreigners, which they would not normally enjoy in their own countries. In the same way that it behooves an individual
to secure cash in a bank rather than at home, it may benefit an
individual to keep wealth offshore rather than in his home country.
The irony is not to be overlooked. Instinctively, we keep what is
valuable to us as close as possible. We want to maintain a sense of
control over our valuables and feel that we can protect them. It is
counterintuitive that a safer place for assets is a foreign jurisdiction,
but that is precisely the case when the local climate of taxation and
litigation makes it hazardous to keep wealth close at hand. When
the home country’s atmosphere is threatening, and other
jurisdictions protect against asset seizure and taxation, prudence
demands relocation to the safer climate.

While many people perceive that Western Hemisphere
governments provide great protection to their citizenry, this
protection does not come without an element of intrusion. When a
government becomes intimately involved in the welfare of its
citizens, a protective posture can quickly become an investigative
one. For example, in most countries, there is no privacy with regard
to bank accounts and corporate activities. Even the most
law-abiding citizens may feel some discomfort in having to make
blanket disclosures, if for no other reason than it feels like a
violation.

Although some individuals may not find such intrusion
objectionable, many are prompted to move offshore when they are
confronted with the economic reality associated with keeping such
a government operational. That is, some people experience moral
revulsion by having imposed upon them the responsibility of
maintaining the public coffers. This is particularly true when the
quality of government service is lacking in some cases, or
excessive and wasteful in others.

In terms of the cost to become structured offshore, interested
parties need only consider the benefits of securing privacy, tax
deferment on investments and asset protection for personal benefit
and for the benefit of one's heirs. There is an initial cost, with small
annual fees to follow thereafter. There are no hidden charges and
every fee can be explained and demonstrated to have afforded the
client a benefit.

---

If you have questions or need any additional information, please feel free to contact Keith L. Hatton (780)-482-2745

---

We are a Canadian Financial services organization specializing in advanced tax sheltering, wealth accumulation planning, business succession, and retirement planning. We have also been very successful in reducing costs of employee programs and providing more tax effective compensation.

health, dental, rrsp, rrif, tax shelter, mutual funds, shared ownership, split dollar, segregated funds, bonds, life insurance, employee benefits, planners, financial, planner, pension plans, offshore, trusts, living buyout, universal life, IPP, rrsp maximums, disability insurance, RCA, levered, financial planning, estate planning, buy sell agreements, group insurance, group RRSP, accident and sickness insurance, Canadians Can Now Purchase an Affordable US Health Care Plan

We are a Canadian Financial services organization specializing in advanced tax sheltering, wealth accumulation planning, business succession, and retirement planning.

Financial, RRSP, Mutual Fund, Estate Planning, IPP, RRIF, Employee Benefits, Life Insurance, Universal Life, Tax Shelter, Living Buyout, Financial Planning, Retirement Planning, Shared Ownership, Pension, Trusts, Offshore, Shareholder Agreements, Accident and Sickness Insurance, Group Insurance, Canadians Can Now Purchase an Affordable US Health Care Plan

Call us toll-free at (866) 444-2745 with questions or comments about this web site.

Copyright © 1996 - 2008 Hatton Financial Inc.

Last modified: December 14, 2008