In 2010, the Foreign Account Tax Compliance Act, or FATCA, was enacted. As an arm of the Hiring Incentives to Restore Employment Act, the goal of FATCA was to eliminate tax evasion through bank accounts off American soil. According to the Foreign Account Tax Compliance Act, citizens with any assets off of United States soil are responsible for reporting the accounts and claiming them for tax purposes to the IRS. For those taxpayers hoping to still get around the FATCA, the act also requires foreign banks to report any account or asset held overseas by a United States taxpayer.
Upon the enactment of FATCA, offshore asset protection became a critical point of tension for United States taxpayers with assets overseas. The question of what to do with those funds or assets became the point of many discussions. With recent discussions in Washington D.C. taking place regarding changes to offshore asset laws, the question is even more relevant.
If you have assets you wish to invest offshore, but don’t want to pay the increasing annual tax (approximately 36.9% for offshore mutual funds), what are your options?
Through Private Placement Life Insurance, individuals are still given the chance to invest their money in a secure, manageable way. Considered a type of universal life insurance, Private Placement Life Insurance has a cash value attached to the performance of your investments. Meaning, if the accounts you’ve chosen to invest in within the policy are doing well, you do well. Whether through mutual funds or hedge funds, both great investment options, investors are likely to see better returns on their assets than through equity based investments.
The best part about Private Placement Life Insurance? It’s completely tax free. Because of this incredible incentive, Private Placement Lift Insurance is a great option for estate planning. Through purchasing a mutual or hedge fund within an insurance policy, your investment will not only accrue interest tax free, but it will also be passed along to your heirs or beneficiaries tax free.
Whether you’re just starting out and looking for the best way to invest offshore the money you’ve worked so hard to earn or you’re simply looking over your portfolio to make some changes in your investment structure, consider Private Placement Life Insurance as a secure, tax free, legitimate choice for a solid offshore investment.