As my wife and I got deeper and deeper into financial difficulty, we had to decide what we were going to have to do to pay our bills and even more important how we could even live a comfortable life style.  Using our retirement pensions was one option.  Our rent was $1,250 a month and our utility bills were another $200.  The cost of our auto, gas and maintenance was going through the ceiling and due to the political turmoil and rising taxes in the United States, it became very obvious that we could not afford to live, let alone pay bills and have a social life.  We had to come to some reasonable assumptions to survive.

Investor Eligibility Criteria for Offshore Life Insurance

If it’s January it must be tax season…. Many U.S. citizens and lawful permanent residents of the U.S. (green card holders) move to another country and forget or choose not to file a tax return in the U.S. But be warned: The U.S. requires you to file a tax return accounting for your worldwide taxable income—and the statute of limitations never runs out.

In many cases, you may have few or no U.S. taxes to pay, thanks to exclusions and deductions that you may qualify for as an expatriate. But you definitely are required to file if you are a U.S. citizen or resident alien. Not filing can create major issues. For instance, if you live abroad for 10 years and then return to the United States, the penalties and interest you’ve accrued may be more than the actual tax.

I spoke at a conference in Florida recently and during the Question & Answer session after my speech, one of the attendees asked me “what was the most erroneous assumption made by folks with regard to international business and investment”?

“The timing of taxation on global profits”, was my immediate response.  You see, many people operate under a false assumption that if they make money abroad, they only pay taxes when they bring their money back into the United States.  And while that may be the case in certain limited circumstances (which we will discuss below), the assumption as a starting point for global business and investment is false.

In the waning days of 2010 President Obama and the United States Congress agreed to a variety of compromise tax measures designed to “extend” the Bush Era tax cuts.  Tax rates were largely maintained at the current levels through December 31, 2012 at which time they are once again set to revert to their old (higher) levels.

There are significant tax, asset protection and investment diversification benefits available with an Offshore Variable Universal Life (VUL) policy.   However, there are additional advantages to consider when evaluating an Offshore VUL policy that you might not have considered in the due diligence process.

Many offshore jurisdictions offer life insurance contract legislation that is better than legislation under U.S. state law. The assets invested with an offshore policy are considered to be in a separate account of the policy and will receive protection from creditors.  This is different than a domestic policy which might subject the owner of the policy to creditor risk in the event of an insurance company bankruptcy.

If it’s January it must be tax season…. Many U.S. citizens and lawful permanent residents of the U.S. (green card holders) move to another country and forget or choose not to file a tax return in the U.S. But be warned: The U.S. requires you to file a tax return accounting for your worldwide taxable income—and the statute of limitations never runs out.

In many cases, you may have few or no U.S. taxes to pay, thanks to exclusions and deductions that you may qualify for as an expatriate. But you definitely are required to file if you are a U.S. citizen or resident alien. Not filing can create major issues. For instance, if you live abroad for 10 years and then return to the United States, the penalties and interest you’ve accrued may be more than the actual tax.

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The pain of filing U.S. income taxes for many individuals is over, but the “sting” of writing the check to the IRS still lingers.  This is the time of the year to evaluate not only last year’s tax liabilities, but to focus on strategies to reduce tax liabilities for 2011 and beyond. 

Interest in international banking is growing, as people around the world are looking outside their own national borders for investment, travel, and new life experiences.

The growth in international travel, coupled with the increasing use of the internet to make a living or help manage businesses from afar, have led to growing use of international banking and international trusts to facilitate more mobile lives.

Some people who never intend to live outside their home country also open international bank accounts and trusts, simply to relocate or diversify their financial affairs, rather than their lives.

International Banking Centers Serve Legitimate Purposes