Global Wealth Structuring is a functional approach to international strategies for managing private wealth. There are many such ways to structure wealth, especially in the offshore financial arena.

When considering the wide array of legal entities that can be used to facilitate your needs, here are a few of the various legal forms of structures that are possible. Noting that you can use a variety of combinations of these formats.

An International Business Company, generally known as an IBC, is a private company, incorporated in an offshore jurisdiction. On its own, it has limited application, however, an IBC may be used in conjunction with offshore Trusts, foundations or holding companies.

Foreign or offshore, discretionary or non-discretionary, Trusts are governed under foreign laws deemed most suitable for each purpose. In addition to providing a protective shield against predators, they serve as vehicles to hold and manage all types of assets in any country. Foreign Trusts can be adapted for different purposes. For example, new immigrants to Canada can use Immigration Trusts to take advantage of tax exemptions for a period.

Offshore Banking, Investment Brokerage and Mutual Funds offer a host of possibilities that need to be discussed and incorporated in an overall plan to optimize benefits.

Which offshore jurisdiction?

International financial centers and favorable tax jurisdictions may seem similar but can differ greatly from each other. Ever changing laws, rules and regulations in each jurisdiction make it mandatory to satisfy compliance and anti-money laundering requirements.

These anti-money laundering rules and regulations may appear cumbersome, but in practice are routine, manageable, and an indirect benefit to investors; professionals and financial institutions consider compliance an essential layer of security.

Good or bad advice? Here are some tests:

Does your structure rely for its effectiveness on "people not finding out"?
If so, it is probably best to think again.

Does your structure seem cheap and easy?
No one wants to incur unnecessary costs but, like most things in life, if it seems too good to be true it probably is.

Are you working with appropriate jurisdictions?
Are you using jurisdictions that have a good reputation as financial centres with regulatory controls, good standards of business and an infrastructure of competent lawyers and accountants? Or does your chosen jurisdiction compete on price and 'confidentiality'?

Which institutions are you working with?
Are you working with an institution with many years experience in the wealth structuring business, a large client base and a global network to draw on? Or are you speaking with a new entrant to the business who is competing on price and is sketchy on the technical information.

Are you going offshore for tax purposes?
This is the wrong reason and may cause you to commit yourself to an illegal activity.

Are you being offered a solution or a product?
Are your needs being listened to and properly understood? Is someone trying to tailor something to fit your precise family situations and concerns, or is the discussion centered on a 'product' that you can buy?

Finally, remember that taxes and laws change from time to time. Ask your advisor how they will continue to update you over time if circumstances change.

In conclusion, if offshore structuring is done with careful planning and within the confines of the law, you or your family may be able to benefit from tax efficiencies, administrative efficiencies and privacy, both for your asset ownership today and for your future plans.

A preliminary meeting with a recognized professional is essential to discuss the pros and cons of different strategies.

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